The business environment today has become extremely competitive. Companies are not only facing competition from their local competitors but also from global ones. Different economic and geopolitical factors make global supply chains necessary. The problem with having global supply chains is that operations become broad and complex. It is much easier to manage operations located in the same geography rather than those located in multiple countries.
Rising costs and increasing competitiveness are making it mandatory for companies to cut costs. Corporations also agree that up to 25% of their expenditures are wasteful in nature and could be eliminated. The problem is that they do not know which 25%? Cutting the wrong kind of costs can lead to a decline in quality or customer service, both of which are sure to reflect as declining sales in the near future. In this article, we will understand the concept of strategic cost cutting and how it adds value, especially to global supply chains.
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