Found Money: Using Supply Chain
Modeling to Find Hidden Cost Savings
Like finding unexpected money in a coat pocket, modeling technology can reveal numerous
cost savings opportunities hiding just beneath the surface.
There’s nothing better than putting on an old coat and finding money in the pocket. The money
was right there, but hidden just below the surface of that coat pocket.
This “found money” has three attributes that make it so great:
It’s Fast – You just reached into your pocket and there it was
in your hand.
It’s Easy – You didn’t work long hours, toiling and sweating
to earn that money.
It’s Unexpected – You hadn’t planned on having that extra
cash when you started the day.
Much like that money in your coat, there are numerous supply chain cost saving opportunities that are hidden just below the surface at most companies, and today’s savvy professionals are using supply chain modeling technology to uncover that money.
This white paper will use real-life examples to explore four modeling techniques used by
industry leaders to “find money” in the supply chain. These techniques include:
1. Product flow-path optimization
2. Demand segmentation and inventory right-sizing
3. Production footprint analysis
4. Transportation route optimization
Each of these techniques can deliver the same fast, easy and unexpected benefits. They are
fast in that they do not require years to implement. They are easy because they do not require
major structural changes to the supply chain. Finally, they are unexpected because modeling
technology often uncovers solutions that contradict intuition or legacy business practice.