Gartner Research

Use Gartner's Supply Chain Cost Framework to Analyze Categories and Manage Levers

Published: 11 May 2016

ID: G00301290

Analyst(s): Paul Lord , Kamala Raman, Michael Dominy

Summary

Supply chain cost management is traditionally driven by financial targets and cost accounting conventions. This research provides supply chain strategists with a framework for evaluating and organizing actions that are more closely aligned with the sources and drivers of cost.

Table Of Contents

Analysis

  • Think and Communicate Differently About Supply Chain Cost
    • Consider Three Categories of Supply Chain Cost
    • Key Take-Aways
  • Focus on Five Levers for Cost Management Actions
    • Pull (One-Off) Cost Reduction Levers for Near-Term Financial Impact
    • Align Networks and Upgrade Capabilities for Long-Term Competitiveness

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