This example demonstrates that cost reduction can be achieved through greater speed and reliability across the supply chain. In addition, an optimized supply chain can also reduce your supply chain cost by reducing inventory levels as well as decreasing risk.
In alignment with your business strategy, a holistic supply chain analysis can determine the optimal service and cost levels for your products in order to reduce the total supply chain cost.
I have ideas about how to reduce cost in the supply chain, but do not have the time or resources to implement them all – how can I define the right priorities?
Model key aspects of your supply chain and simulate multiple scenarios to assess their cost-reduction potential. These scenarios can then be used as a basis for prioritization to select how you wish to proceed.
A focused supply chain study can yield tangible results within a matter of weeks, e.g. via advanced analysis of total landed cost. Our Supply Chain Optimization Tool (SCOT) can quickly and effectively deliver a sound assessment of levers and impact.
In addition, longer-term studies can provide you with a more comprehensive supply chain strategy that will allow you to improve your supply chain far beyond simple cost savings.