Supply Chain in a Digital Era: Adopt a Zero-Based Approach to your Supply Chain

Supply Chain in a Digital Era: Adopt a Zero-Based Approach to your Supply Chain

In today’s world, companies are under immense pressure to cut costs within their Supply Chain. Year after year many companies blindly use past historical goals as future metrics without much data or analysis.  The market demands have become unpredictable, unique and diverse while requiring lightening-fast decisions to be made.  Because of this rapid change, operational foundations created yesterday can no longer support today.  It is time to break the cycle when it comes to supply chain cost optimization.  By applying a Zero-Based Budget mindset and leveraging tools like Anaplan in your Supply Chain, you have the ability to focus on must-have costs in the future and reduce the unnecessary ones.

SO HOW DO YOU START IMPLEMENTING ZERO-BASED BUDGETING IN YOUR SUPPLY CHAIN?

Spaulding Ridge understands the technology and underlying processes to support Zero-Based Budgeting transformations.  We guide organizations with these core principles in mind.

ZBB Core Principles:

INCREASE VISABILITY WITH BOTTOMS UP APPROACH

Bottoms up approach allows organizations to drill down into operational data, understand cost drivers, and make informed spend decisions when attempting to cut costs.

LEVERAGE TECHNOLOGY SYSTEMS

Spend time defining the right processes, not analyzing your data.  Anaplan centralizes your data and analysis so it can do the heavy lifting for you.

FOCUS ON THE FUTURE, NOT THE PAST

Don’t cut COGS based on an arbitrary percentage. Harness predictive capabilities of Anaplan to focus on future business needs and strategic initiatives.

AVOID QUICK CUTS, UNDERSTAND THE IMPACT TO YOUR BOTTOM LINE

Near-term fixes don’t always mean long-term gains.  A ZBB approach combined with smart tools allows you to understand the true impact cost cuts have on your bottom line, long-term.

Please contact us for the full white paper.

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