Cost control against backdrop of uncertainty
Cost control against backdrop of uncertainty
In the face of spiralling cost inflation , supply chain leaders must prioritise efficiencies that are targeted and sustainable , EY says .
With cost cutting now a major objective for organisations , EY warns that such programmes should not be confined to the procurement function .
The report explores in depth how organisations can reduce supply chain costs , while adapting to market uncertainty .
It says that , although there is a great deal of urgency around cost cutting , the methods behind the measures must not be short-sighted , “ especially considering that the goal is not just savings for now but adding resiliency in the longer term ”.
EY adds : “ Ideally , executives identify specific cost-reduction steps and timelines to be applied across the organisation . Rapid cost reduction strategies in supply chains can net value in a single quarter or six months , and these quick wins can be used to propel further actions .
EY lists short-term cost-reduction initiatives that include the following : n PLAN n SOURCE n MAKE n DELIVER
EY says : “ Global market uncertainties and disruptions continue to put pressure on supply chains .
“ Supply chain executives already tasked with navigating bottlenecks and materials shortages are now facing demand fluctuations , trade tension , talent shortages and tight margins .”
– giving customers the assurance that their packages have been delivered with visual confirmation .
How do you ensure efficient fulfilment for international markets ? Several crucial fulfilment factors contribute to the success of businesses in international markets , helping to ensure efficient operations and customer satisfaction . One of these is affordable , time-definite and reliable deliveries .
Meeting the demand for timely and reliable deliveries is paramount in international markets . Customers expect