Customary POP Deficiencies Weaken Their Value


No Profitability Measures: Business executives need visibility relative to several dimensions of operational profitability. Business executives need to know the profitability of all trading partners, of all segments of trading partners, of each and every trading partner order, of each product category or each product for each and every trading partner and more. Without such visibility, business executives cannot possibly make truly informed business decisions, nor identify business growth opportunities. While customer satisfaction is always a goal of a company’s strategy, it is not the only goal. Profitability is also a key strategic goal of any for-profit business entity. So, if a company’s operational success is being measured solely by a set of customer-centric focused measures without consideration of customer-focused profitability, then it becomes very easy for the company’s operations to be misaligned with its business strategy. A key deficiency in customary Perfect Order Programs is that they are void of profitability measures.