Supply chain cost-cutting strategies: How top process industry performers take radically different actions
In the face of the steady run up in manufacturing and logistics costs, the old strategies for cost containment no longer have the same punch.Companies in the process industries (including chemicals, pharmaceuticals, food and beverage, oil and gas, pulp and paper, and health and beauty aides) have had to cope with rising manufacturing and logistics costs over the past few years. To avoid a 7.96% increase in logistics costs (what the average company has experienced in the past two years), companies should follow the roadmap of best-in-class companies, which have been able to reduce costs or keep them flat via supply chain transformation.
In the face of the steady run up in manufacturing and logistics costs, the old strategies for cost containment no longer have the same punch. Companies in the process industries now widely realize that they must restructure their supply chains to take out costs and maintain their customer service edge. Aberdeens survey found that 75% of all respondents have either recently redesigned or are in the process of redesigning their supply chains.