Is your supply chain in a death spiral?
November 9, 2017
November 9, 2017
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.
ZBSC approaches can drive 5 to 10% rapid COGS savings and a COGS to revenue ratio of up to 600 to 800 basis points over time.
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 unites optimization efforts around a data-driven, transparent, and continuously renewed view of cost elements.
VIEW THE INFOGRAPHIC33%
Only 33% of operations executives see their cost intervention initiatives as durable.
18%
Just 18% of operations executives think leadership has the right initiatives for cost-reduction targets.
Contributors