Cost Reduction Strategies in Supply Chain: Guide
Logistics Bureau
NOVEMBER 28, 2024
If net profit on sales is 5%, for example, a reduction in supply chain costs from 9% to 4% (or from 12% to 7%) will double net profits. For instance, oil prices were relatively low during the period between 1984 and 2004, while labour and technology costs changed more quickly. Cost savings flow directly to the bottom line.
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