Is your supply chain in a death spiral?

Given the fact that half of a company's costs lie in the supply chain or cost of goods sold (COGS), optimizing supply chain costs is often a major focus. Companies can achieve three to four percent in category reductions year after year, yet, most never make a sustainable bottom-line impact on COGS that fosters true competitive agility.

Leading companies are breaking this cycle with ZBSC (zero-based supply chain) as a part of ZBx (zero-based mindset)—a holistic way to drive profitability that emphasizes the future over the past. ZBSC helps companies capture sustainable supply chain value in a rapidly changing world.

ZBSC requires a mindset shift across the organization

• Hitting a wall. It is not that supply chain executives have turned a blind eye to systemic supply chain issues. Companies are doing cost optimization across the supply chain. But most are not getting sustainable results.
• Dynamic, not dead end. By applying ZBSC, companies no longer push for the next percent of hoped-for savings. They embed a new way of working that constantly enables new ideas about where and how to capture value that can be funneled back to growth.
• No standing still. Continuous renewal makes ZBSC different from traditional supply chain cost optimization. Whereas old methods rely on cost targets based on yesterday’s realities, ZBSC is a sustainable reset of a company’s cost baseline.

Break out of the supply chain death spiral