Most corporate supply chain organizations have the ability to impact 50 to 70 percent of their corporation's total cost structure.
Here are best practices to translate supply chain improvements into significant corporate financial results.
When it comes to saving money from strategic sourcing, outsourcing or supply chain improvement initiatives, "perception" isn't enough. Businesses have always strived for bottom-line impact from programs like these, but for years they have struggled with quantifying savings and creating tangible corporate financial results. This is particularly evident in supply chain improvement initiatives, for which the "facilitating" department, typically supply chain, procurement or logistics organizations, do not have direct control over the budgets that are impacted by the improvements.
Improving corporate financial performance is certainly not the only strategic role for supply chain organizations, but it is inarguably a very important one. Most corporate supply chain organizations have the ability to impact 50 to 70 percent of their corporation's total cost structure, so creating a model that can optimize this lever is critical to any supply chain organization's success. Furthermore, the ability to track savings directly to organizations' budgets ensures the ongoing success of supply chain management initiatives.
In this Ariba Knowledge Nugget, learn best practices for Tracking and Realizing Savings from Strategic Supply Chain Initiatives.