Gartner’s Supply Chain Cost Optimization Playbook

Analyst(s): Miguel Cossio, Patrick Connaughton, Andrew Knight, Sam New, Paul Lord

If you ask 10 different supply chain leaders in procurement about the top metrics used to measure their performance, nine will mention cost savings as a primary goal. It is important to highlight how cost optimization and cost reduction are not one and the same. A myopic focus on cost reduction can result in the detriment of service standards and customer experience, whereas cost optimization aims to improve efficiencies and reduce waste while maximizing business value.

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