5 Levers for Optimizing Supply Chain Costs

Prioritize your supply chain cost initiatives by operating outcomes

Gartner research analysts found that supply chain management models remain short term and functionally focused. Short-term cost goals are prioritized over long-term business value, and functional focus limits ability to pursue big change.

To optimize supply chain costs, it's important to align business value (customer experience, profitable growth, compliance and sustainability) with efficient supply chain operating outcomes (demand fulfillment, product supply and new products/business).

Analysts identified 5 key levers to manage in pursuit of end-to-end supply chain cost optimization. Are you fully optimizing supply chain costs? Download the guide to find out.

Download guide: Achieve end-to-end supply chain cost optimization

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    When supply chain and business leaders align and collaborate around operating outcomes that drive business value, they optimize total cost more effectively.

    Focusing on shared strategic goals, not cost-reduction targets, enables you to: 

    • Reduce conflict and debate over spending cuts and budget allocations -- even amid urgent budget pressure, disruption and uncertainty. 
    • Avoid rash trade-offs among cost, service and quality. 
    • Align around operating decisions that minimize waste, while ensuring target performance for key outcomes. 
    • Break down cost optimization problems into measurable, repeatable events and conditions.

    Strategic, programmatic cost optimization

    Urgent budget pressure is real, but be strategic and programmatic about cost optimization so that short- and midterm cost decisions don’t jeopardize the long-term effectiveness and objectives of your function and organization.

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