Benefits of Supply Chain Advantage can add up to 7-20% cost reduction and another 2-10% revenue enhancement.
Supply Chain Advantage through better planning, scheduling and execution of all supply chain activities is gaining increased focus in the board rooms. The reason is that the companies are increasingly achieving significant cost savings and revenue boost by well-functioning supply chains. Conversely, lack of supply chain excellence leads to chaos, missed shipments, high costs and lost revenue opportunity.
The cost reductions flow from reduced inventories, reduced transportation tasks (distance, quantity or both), better rates, and reduced labour to manage and execute supply chain tasks.
Revenue enhancements flow from increased throughput, increased customer loyalty, potential to charge higher prices through differentiation and less lost sales due to stock-outs.