Guest Column: Smart Decisions In A Recession – Article#2

By Subhash Chowdary, Aankhen Inc.

Taking cost out of the supply chain is an executive decision. It is a strategic executive decision that must be executed with a clear understanding and a well communicated strategy across the chain. A supply chain interacts with many decision makers across the enterprise and with partners external to the enterprise. Cost saving decisions made without a common strategy will have unintended consequences.

Supply chain cost savings directly impact the bottom line dollar for dollar compared to a dollar increase in sales revenue. In simple terms:
Sales – Cost of Goods Sold = Gross Profit

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