Cost and value drivers in supply chain

A description of the structural sources which influence the nature and level of costs incurred by business activity. For example, if we used to buy from two domestic sources and we now single-source from overseas, there are at least two cost drivers at play: the scale of our purchase and the distance over which the goods are shipped. Cost drivers are related to the value chain.  · Below is analysis for key drivers for supply chain as expenses and opportunities for cost reduction: a. Transportation. There are many areas to be looked at in transportation to achieve cost savings. It has been discussed in detail in my article “Five Ways to Achieve Cost Savings in Transportation”. www.doorway.ruted Reading Time: 10 mins. modeling regional cost drivers under different scenarios, we illustrate regional cost drives and provide an overview of global supply chain issues to help elucidate key factors that may influence manufacturing location investment decisions. We conduct this analysis for a particular.

Now it is also needed here so that the cross-functional drivers of the supply chain can be given accountability and get efficiency from them. There are Six drivers involved in the supply chain, in which this blog will know what is their role in supply chain. 1. Facilities: The first physical facility in the supply chain network is the physical location where the pay product is stored, this location can be of two types, first (production site) and second storage location. Number 3. Customer profitability. The supply chain has an enormous impact on customer profitability. And if you start to understand the key drivers I just mentioned, you will start to see ways to INCREASE customer profitability. Maybe by servicing them in different ways through different channels, for example. Facilities, inventory, transportation, information,sourcing and pricing are the some major drivers of the supply chain. The performance of any supply chain can be measured on the basis of the drivers that run it. THE ROLE PLAYED BY MAJOR DRIVERS IN ACHIEVING A STRATEGIC FIT.

Business needs to align strategic goals with supply chain priorities. By Margaret Locher CIO | It’s all about the customer: 71 percent of business operators said their top business objective is increased loyalty and customer satisfaction, a. A supply chain consists of manufacturers, retailers and others involved in filling a customer order. The elements of a supply chain will vary with business and product type. For example, the supply chain for a restaurant will not be the sam. How can your supply chain save you money? Knowing your costs today is the only way to optimize it tomorrow. Busakorn www.doorway.ru / Getty Images Does your supply chain look like 13 separate British Colonies or a unified United States?.