Supply Chain Cost-Cutting Strategies
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.
Greek-Based Sunlight Batteries Eyes North American Assembly & Distribution Facility in Greensboro, North Carolina
Savoie’s Sausage and Food Products Eyes Production Complex in St. Landry Parish, Louisiana
A Site Selector’s Checklist for Locating in the U.S.
Location USA 2019
Where to Invest in the Booming Aerospace Manufacturing Industry
2019 Auto/Aero Site Guide
What Should High-Growth Companies Look for in a Community?
The Trade War and Its Impact on the Location Decision Process
A Changing Food Manufacturing Industry
2017 Food Processing
33rd Annual Corporate Survey & the 15th Annual Consultants Survey