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Your Supply Chain Could Benefit from A New Take on Budgeting
April 4, 2019
“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.