brian-templarLeading logistics consultancy, Davies & Robson has produced a free, easy to read pocket guide for companies seeking to reduce supply chain costs.

The booklet contains an action plan to enable organisations not only to reduce costs in the short term but also to ensure that they are in a strong position to take advantage of the upturn when it comes.

Davies & Robson Chairman, Brian Templar says: “Cost reduction – essential now – needs to be planned and managed in a sustainable way; a way which will strengthen rather than weaken long term competitive position.

“Businesses are not only at risk now but also will be when the situation eases, because that’s when leaner, fitter competitors will have the potential to out-compete weaker rivals.”

The guide lists 12 key areas where costs may be reducible including product and customer profitability, customer service, warehousing and transport operations, outsourcing arrangements, procurement practices and measurement and reporting.

Templar continues: “For example, in one company, a recent Davies & Robson review identified 10% of working capital tied up in redundant and obsolete stock. By using modelling techniques to check item-level profitability, identifying and reducing slow-moving and obsolete products and those providing limited profitability after the allocation of supply chain costs companies can uncover significant opportunities to take out cost.”

In addition to practical cost reduction techniques, the guide also highlights the importance of process and planning in driving efficiency, reducing cost and ensuring that organisations emerge in a strong position when the recovery comes.

For a free copy of the guide, call Davies & Robson: 01327 349090

Comments are closed.