Gartner Research

For the CSCO: Manage Four Levers to Reduce Supply Chain Cost

Published: 20 September 2017

ID: G00326249

Analyst(s): Paul Lord, Stan Aronow

Summary

Unfocused and reactive cost reduction tactics create organizational conflict and put value at risk. CSCOs can use this research to develop effective cost management approaches that achieve positive results and elevate performance.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Supply and distribution networks not aligned with demand patterns and business strategy create waste that supply chain leaders cannot reduce through improved operation
  • Increased product portfolio complexity constrains network agility, requiring supply chain leaders to measure cost impacts and mitigate through collaboration with commercial and engineering
  • Organizational complexity and distractions require supply chain leaders to cultivate aligned mindsets and practices for sustained improvement of efficiency
  • Increased performance expectations require supply chain leaders to invest in elevated operating capabilities for competitive cost advantage

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