Companies can cut costs in many ways, such as less expediting, better crisis management, fewer supply risks and financial exposure, reduced working capital through better inventory control, and generally more effective supply chain planning. The traditional focus on supply chain cost control and operational efficiency remains important, but will not be as effective in reducing operating costs without real flexibility built in.
DRIVING REVENUES
We have observed that companies that successfully implemented those five levers achieved a significantly higher growth rate – up to 15 per cent annually. Flexibility typically helps avoid stock-outs and builds customer loyalty by ensuring fast and reliable delivery times for high-demand products. Hence it becomes a differentiator – business customers value consistent service levels more than ever, because it helps them to meet their customer needs, and also with their own supply chain planning.