With so many companies focused on profitability, cost optimization, reduction in operating overhead, and improving gross margin, which results in widespread layoffs and downsizing, how is this impacting supply chain management? Within supply chain management, are there high-priority cost savings areas focused on strategic initiatives in 2024 and 2025?

It is correct that in the current economic climate, companies are focus on the efforts to be profitable and increase gross margins. To enhance efficiency and reduce costs, companies may need to restructure their workforce to better align with evolving operational models and technological advancements. these efforts more often result in downsizing, sparking widespread layoffs as we have experienced in the global ICT landscape. In most multi-national enterprises, supply chain management is central to cost optimization and improving margins. Suppply Chain Centres of Excellences drives demand consolidation and forecasting of IT services across the business for an integrated sourcing plan. By doing so, they optimize inventory levels ensuring right products are available at the right time and without any wastages. and reduce waste. initiatives such as spend analytics and control over supply chain operations and maintaining reputable suppliers and maintain partnerships.

Within supply chain function the focus should always be on optimization and efficiency, both in a financially constrained climate and otherwise. Sustaining project partnerships with design teams, lean focused optimization with quality teams and talent development especially to implement strategic automation of processes can be some of the top focus areas for profitability improvements. A lot of companies have made changes responding to financial pressures in the supply chain that are not sustainable initiatives and do not address long term focus on scalability and competitiveness.