DSW recognized the importance that SCM played as a percentage of its total cost of goods sold. In the case of DSW, SCM content represented approximately 60 percent of total COGS. The historic performance of SCM savings was very small, thus enabling some immediate identification of improvements which could be undertaken.

Based on its cost and balance sheet structure, for every \($1\) saving in SCM savings, approximately $.85-$.90 flowed to the pretax level. Additionally however, the reduction in material assets reduced the property tax liability as well, so in some cases the pretax effect may have been greater than \($1\) to \($1\) at pretax.