Gartner analysts found that 57% of the models used to manage supply chain costs are short term and functionally focused. Short-term supply chain cost goals are prioritized over long-term business value, and functional focus limits ability to pursue big change. Urgent budget pressure is real, but a strategic, programmatic cost optimization approach, versus supply chain cost cutting, helps to avoid risks to supply chain cost efficiency.
To optimize supply chain costs, it's important to align business value (customer experience, profitable growth, compliance and sustainability) with efficient supply chain operating outcomes (demand fulfillment, product supply and new products/business).
Analysts identified 5 key levers to manage in pursuit of end-to-end supply chain cost optimization. Are you fully optimizing supply chain costs? Download the supply chain costs guide to find out.
