Supply Chain Cost Reduction

The true cost of cost-reduction.

In a world obsessed with rapid growth, cost-saving can very often be overlooked or underappreciated as a key supply chain activity.

Not only does it effect your bottom line, but a supply chain that is not cost-efficient is often not operationally effective. That is to say, where waste has been allowed to grow, or fundamental issues not addressed at the source.

One way to quickly get a handle on the cost of your supply chain is via a cost-to-serve analysis.

Calculating a Cost to Serve consists of aligning the high-level costs captured by the finance team with the volume of units handled by each activity. It is then easy to instantly identify high cost per unit supply chain activities which can be analysed for potential cost reduction opportunities.

Our consultants can work with you, across your entire supply chain, to identify areas of cost saving priority – from freeing up unnecessary stock, to calculating the payback period of different warehouse automation scenarios.