Supply Chain Cost-Cutting Strategies
2-19-2009
In the face of the steady run up in manufacturing and logistics costs, the old strategies for cost containment no longer have the same punch. Companies in the process industries now widely realize that they must restructure their supply chains to take out costs and maintain their customer service edge. Aberdeen's survey found that 75% of all respondents have either recently redesigned or are in the process of redesigning their supply chains.
Best-in-Class Enormous Performance Advantage
The study found a tremendous gap between best-in-class organizations and their peers.
Best-in-class companies have a 2.5X to 9X advantage in improving their key performance metrics since 2005, including improving perfect order percentages and lowering supply chain costs. In addition, the best-in-class have better absolute performance. They are twice as likely as their peers to have:
• Forecast accuracy at the product family level of 71% or better
• Perfect order percentage of 91% or better
• Logistics costs as a % of sales of 6% or less
To achieve these enormous advantages over their peers, they have taken radically different actions in organization structure and supply chain technology investment. As a result, best-in-class companies are much further ahead in closed-loop integration of supply chain planning and execution, in addition to data and process visibility across their end-to-end supply chain and from plant floor to top floor.
Project Announcements
Canfor Expands Fulton, Alabama, Production Operations
04/22/2024
Tucker Door & Trim Plans Henrico County, Virginia, Operations
04/19/2024
Zekelman Industries Expands Blytheville, Arkansas, Operations
04/19/2024
Fibrebond Corporation Expands Webster Parish, Louisiana, Operations
04/19/2024
Master Steel Expands Hardeeville, South Carolina, Operations
04/19/2024
L3Harris Technologies Expands Orange County, Virginia, Operations
04/18/2024
Most Read
-
2023's Leading Metro Locations: Hotspots of Economic Growth
Q4 2023
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
38th Annual Corporate Survey: Are Unrealized Predictions of an Economic Slump Leading Small to Mid-Size Companies to Put Off Expansion Plans?
Q1 2024
-
Manufacturing Momentum Is Building
Q1 2024
-
Making Hybrid More Human in 2024
Q1 2024
-
20th Annual Consultants Survey: Clients Prioritize Access to Skilled Labor, Responsive State & Local Government
Q1 2024
-
Public-Private Partnerships Incentivize Industrial Development
Q1 2024