Top 10: Cost Reduction Strategies in Supply Chain

According to this article by Tom Chapman at Supply Chain Digital, the top ten cost reduction strategies for supply chains are as follows:

1. Optimise inventory management: This not only meets customer needs but also reduces carrying costs associated with excess inventory.

2. Improve demand forecasting: Enabled by technology and industry expertise, supply chain decision-makers are left better placed to plan for the future as they can anticipate customer needs and adjust inventory levels accordingly, reducing overstock and stockouts.

3. Negotiate strategically with suppliers.

4. Optimise transportation and logistics.

5. Enhance supplier relationships and collaboration.

6. Implement lean manufacturing. 

7. Streamline procurement processes.

8. Utilise technology and automation.

9. Outsource where possible.

10. Take a different approach to packaging.

Nucleus will point out that 1, 2, 3, 4, 5, 7 and 9 can be progressively achieved through an engagement with a 4PL Supply Chain as a Service provider, like Nucleus. We broadly refer to these processes as supply chain optimisation.

Source: Supplychaindigital