A recent article in CPO Agenda on how supply chains hold the key to cost cutting covers a recent Opportunities in Adversity survey by Ernst & Young across 337 senior supply chain executives. According to the survey, the majority of supply chain executives (83%) reported that their supply chains provided opportunities to lower costs, with a whopping 57% indicating that major cost savings opportunities rest in the supply chain.
This should not be a surprise considering recent findings by Aberdeen, Accenture, Hackett, and many others. The only surprise is that companies still see the need to do these studies. How many studies should it take to convince you that untold savings opportunities lie in your supply chain? That every procurement event is a savings opportunity? That every dollar saved by procurement matches five, ten, and sometimes twenty dollars of revenue brought in by sales? That best-in-class operations see a 6:1 ROI for every dollar spent on their procurement operations? I’d think three would be enough (and by now there are well over thirty). So, what are you waiting for? Hire a consultant (they’re cheap!) and get cracking!