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Supply Chain Cost Saving Strategies, CAPS Research

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Supply Chain Cost Saving Strategies, CAPS Research

This is a CAPS research study by Lisa M. Ellram, Ph.D., Wendy L. Tate, Ph.D., and Thomas Y. Choi, Ph.D.  I know both Lisa Ellram and Thomas Choi.  Both are great professors and extremely knowledgeable.  Thought this would be a good video to share on supply chain cost saving strategies.

There are various cost-saving strategies that companies can implement in their supply chain operations to improve efficiency and reduce costs. Some of the most common strategies include:

  1. Sourcing and procurement: Companies can save costs by sourcing materials and products from lower-cost suppliers, negotiating better prices with existing suppliers, and reducing the number of suppliers they work with.
  2. Lean manufacturing: Implementing lean manufacturing techniques, such as just-in-time (JIT) inventory and kanban systems, can help companies reduce inventory costs and improve efficiency.
  3. Transportation and logistics: Companies can save costs by optimizing their transportation and logistics operations. This can include consolidating shipments, using more cost-effective modes of transportation, and implementing route optimization software.
  4. Inventory management: Implementing inventory management techniques such as demand-driven replenishment, using safety stock and buffer inventory, and vendor-managed inventory (VMI) can help companies reduce inventory costs while maintaining customer service levels.
  5. Automation and technology: Companies can save costs by automating manual processes and using technology to improve supply chain visibility and coordination. This can include using enterprise resource planning (ERP) systems and supply chain management software.
  6. Collaboration and outsourcing: Companies can save costs by collaborating with other companies and outsourcing certain supply chain functions to third-party providers.
  7. Lean Six Sigma: Implementing the Lean Six Sigma methodology can help companies identify and eliminate waste in their supply chain operations, leading to cost savings.
  8. Reverse logistics: Implementing a reverse logistics strategy can help companies recover value from returned or excess products, reducing costs associated with disposing of these products.

It’s important to note that not all of these strategies will be applicable to every company, and it is a combination of the strategies that will lead to cost savings and efficiency.

Strategic Sourcing and Procurement Blogs

Negotiation Quotes

  • “The most important trip you may take in life is meeting people half way.”  ~ Henry Boyle
  • “I want women to get paid more. I want to teach them to negotiate so they get paid more.” ~ Sheryl Sandberg
  • “You have to persuade yourself that you absolutely don’t care what happens. If you don’t care, you’ve won. I absolutely promise you, in every serious negotiation, the man or woman who doesn’t care is going to win.”  ~ Felix Dennis
  • “Focus on the lowest total cost of ownership, not the lowest price.” ~EverythingSupplyChain.com
  • “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” ~ Sun Tzu
  • “A true leader has the confidence to stand alone, the courage to make tough decisions, and the compassion to listen to the needs of others. He does not set out to be a leader, but becomes one by the equality of his actions and the integrity of his intent.” ~ Douglas MacArthur
  • “The best move you can make in negotiation is to think of an incentive the other person hasn’t even thought of – and then meet it.” ~ Eli Broad
  • “We tend to think that, in a traditional organisation, people are producing results because management wants results, but the essence of a high-quality organisation is people producing results because they want the results. It’s puzzling we find that hard to understand, that if people are really enjoying, they’ll innovate, they’ll take risks, they’ll have trust with one another because they are really committed to what they’re doing and it’s fun” ~ Peter Senge
  • “What business strategy is all about-what distinguishes it from all other kinds of business planning-is, in a word, competitive advantage. Without competitors there would be no need for strategy, for the sole purpose of strategic planning is to enable the company to gain, as efficiently as possible, a sustainable edge over its competitors.” ~ Kenichi Ohmae
  • “The reason most people never reach their goals is that they don’t define them, or ever seriously consider them as believable or achievable. Winners can tell you where they are going, what they plan to do along the way, and who will be sharing the adventure with them” ~ Denis Watley
  • “Negotiation is not a policy. It’s a technique. It’s something you use when it’s to your advantage, and something that you don’t use when it’s not to your advantage.”  ~ John Bolton
  • “You don’t want to negotiate the price of simple things you buy every day.” ~ Jeff Bezos

Supply Chain Cost Saving Strategies