C H A P T E R 1 0 Phase 3: Opportunity Analysis > July 11­15: Due Diligence for the Project List Three percent profit improvement to the sales value of the supply chain: As described in Chapter 1, that's the rule-of-thumb opportu- nity before the data are prepared (read: sanitized) for presentation to executives and the board. For every $100 million in revenue, that means an opportunity for an extra $3 million in earnings. This gem is worth repeating. Where any company comes in against this rule, however, de- pends on its distance from parity on six key metrics: revenue, perfect order fulfillment, order fulfillment cycle time, upside supply chain flexibility, cost of goods, and total supply chain management cost. The more of these metrics to which a company performs at or better than parity, the more likely it is that the discovery and analysis proc- ess will yield opportunity of approximately 1.5 percent. Companies that perform below parity with respect to these metrics typically will find opportunities in excess of that amount--up to 4.5 percent. Depending on how experienced design team members are at the budgeting process, the opportunity assessment will range from sim- ple to mind-bending. The objectives of this last session in the July 11 to 15 on-site are to create, refine, and prioritize the weights and 129 American Managememt Association · www.amanet.org