Order Management | News | Portland Group | Procurement | Consulting Services | Managed Services

By: Portland Group  05-Apr-2012
Keywords: Supply Chain, Procurement, Managed Services

March 2012

When companies attempt to reduce their supply chain costs or improve their logistics efficiency they often only look at the rate structure and relationship with their third party logistics & warehouse providers. This neglects levers that exist within their own organisation that influence elements such as order size, value, and frequency that is shipped to customers. The reasons for not looking internally for opportunity are various: fear that changes in order policy might result in lower service levels; limited understanding of the current cost to serve (and therefore what benefits could be had by changing practices); or misconceptions on what is important to the customer (e.g. reliability versus frequency). With more channels to market and smaller order sizes becoming the norm, the supply chain cost to serve is increasing putting pressure on margins. Re-evaluating how companies manage orders can be an effective method to unlock value, continue to serve profitably and critically drive improvement with minimal investment.

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Keywords: Global Sourcing, Managed Services, Procurement, Supply Chain

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