Supply Chain Cost Management Checklist

Move from cost-cutting to cost optimization

When faced with disruption, organizations often stop discretionary spending, lay off staff, reduce training and cut capital investments. 

Winning enterprises, however, establish an ongoing cost management discipline, practice cost optimization and forecast for the upturn.

To position the organization for long-term success, supply chain leaders must protect innovation funding. Take the five actions on this checklist to manage supply chain costs efficiently while also driving innovation.

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    Gartner support for supply chain cost management

    Traditional supply chain cost management models are short-term and functionally focused, making it hard to reduce supply chain costs. Supplier substitution, outsourcing, supplier refinancing and inventory changes also make supply chain cost management challenging. The best supply chain leaders successfully control supply chain costs in the face of disruptions by first defining key operating outcomes (like demand fulfillment), then aligning business value (such as customer experience), and finally collaborating with key stakeholders. Gartner insights, advice and tools are specifically designed to help supply chain leaders create a strategic vision for supply chain cost management that drives tangible performance improvements while also increasing supply chain leadership effectiveness, scope of business influence and strategic relevance. Visit gartner.com to learn more.