The Ledger

Your Supply Chain Could Benefit from A New Take on Budgeting

“With advances in digital technologies and analytics, adopting a zero-based mindset is not about slashing costs in whatever way possible. It’s about finding the resources that are not being used efficiently and reallocating them to improve capabilities, fund growth initiatives and increase competitive agility in a rapidly changing and complex environment.”

Because half of a company’s costs lie in the supply chain or cost of goods sold (COGS), supply chain leaders are under constant pressure to reduce costs. A zero-based mindset is more than hunting down old costs in new ways. It requires a major shift in thinking about spending and cross-organizational commitment, and it’s enabled by digital technologies.

Read More at Industry Week >

New Priorities in the Consumer Goods Marketplace

Consumers have completely changed the way they shop, and it is up to the consumer goods industry to adapt. Today’s consumers expect their consumer goods brands to provide the products, services, and experiences that meet their individual needs at just the right moment. However, the traditional operating models simply weren’t designed for this level of complexity. To be successful, brands must pivot to operating models that can deliver consumer relevance and capture new growth opportunities in a highly complex, uncertain, and ever-changing consumer goods marketplace.

Read More at CFO Magazine >

Reducing Costs with Centralized Category Management

Category management managers are employing a broader set of performance metrics that go beyond vendor savings, including operating efficiency metrics such as: procurement operating cost as a percentage of total savings; spend managed per procurement employee; and, purchase orders processed per procurement employee. This added focus on operating performance helps to balance the savings achieved using new sourcing approaches with the cost required to achieve them.

Read More at The Wall Street Journal >

Modern Manufacturing is On the Rise

There is a huge amount of innovation happening in manufacturing regarding the type of the products being designed (which are helping address some of the sustainability and environmental issues) and the processes to manufacture and sell them. Manufacturers are leading the pack of companies that are transforming their businesses, driving innovation, and winning in the digital economy. By leveraging dynamic technologies, leading manufacturers are expanding their reach to new competitive avenues and new opportunities to deepen relationships with customers and supply chain partners. The intelligent enterprise concept provides the blueprint for companies in the industrial manufacturing industry to optimize, extend, and transform their businesses.

Read More at The Digitalist by SAP >