Search By Topic The Green Supply Chain Distribution Digest
Supply Chain Digest Logo

Supply Chain News Bites

Supply Chain Graphic of the Week: Simple Formula for Supply Chain Cost Optimization

 

Cash Flow, Network Redesign, and Growth-Focused Investments

 

Nov. 5,  2020

At the virtual Gartner Supply Chain Executive Forum this Week, originally scheduled for the first time in Orlando from its normal venue of Scottsdale, AZ, analyst Paul Lord led a session on "supply chain cost optimization."

 

As part of that, Lord presented what he called a simple formula for companies to adopt, as seen in the graphic below:

 

 

In the end, it is pretty simple:

 

In the short term, focus on steps that will improve operating cash flow, such as actions to reduce inventory and distribution costs.

 

In the mid-term, look at opportunities to reconfigure the supply chain network, to match with larger strategies and find new cost savings.

 

In the longer term, focus new supply chain investments in areas that will drive growth.

 

A good framework - but we wish it was that easy.

 

Any reaction to our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback button below.

 

 Your Comments/Feedback

 
 
  .,

Features

Resources

Follow Us

Supply Chain Digest news is available via RSS
RSS facebook twitter youtube
bloglines my yahoo
news gator

Newsletter

Subscribe to our insightful weekly newsletter. Get immediate access to premium contents. Its's easy and free
Enter your email below to subscribe:
submit
Join the thousands of supply chain, logistics, technology and marketing professionals who rely on Supply Chain Digest for the best in insight, news, tools, opinion, education and solution.
 
Home | Subscribe | Advertise | Contact Us | Sitemap | Privacy Policy
© Supply Chain Digest 2006-2019 - All rights reserved
.