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Eight Supply Chain and Operations Levers That Matter in a Downturn

Which switches to take out cost?


8 Supply Chain Levers That Matter in a Downturn

Cutting supply chain costs without focusing on both the core business today and where it will be tomorrow, could sacrifice revenue in the short run and limit the company’s ability to thrive over the long haul. To get the cuts right, the first focus should be on products and customers, since cutting less profitable customers and products might drive savings, but only if one knows whether those customers and products are expendable or expandable.

For most companies, the opportunities to drive out costs will come from focusing on eight key areas:

  • Reducing working capital
  • Minimizing direct material costs
  • Cutting discretionary spend and enforcing compliance
  • Leaning out operations
  • Improving key cross-functional planning process
  • Reconfiguring the product portfolio for growth
  • Restructuring the manufacturing and supply chain network
  • Targeted product innovations and time-to-market reduction

To learn more about the supply chain and operations levers that matter in a downturn, download the attachment below.

Related Content:
Resource:  Economic Stimulus - Cost Management Strategy
Deloitte Debate:  It’s Time to Circle the Supply Chain Wagons
Services:  Consulting
Overview:  Supply Chain & Operations 

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