In a business profit improvement is function of revenue and cost.
Revenue and cost has different levers of improvement.
Cost optimisation not only increases profitability and stakeholder value,
it also releases scarce resources that can be reinvested into new strategic initiatives.
Most of time companies gets carried away in cost pressure and crosses thin line between cost
optimisation and cost cutting.
Cost optimisation is comprehensive and it covers productivity, service levels, process improvement,
new technologies and business
practices on one side and cost on other side. Major levers of cost optimisation are in operational
efficiency, Working capital management,
Supply chain and procurement.
Our approach towards cost optimisation is Diagnose>> Detail>>Design>>Deliver>>Sustain
Putting right inventory at right time at right location always yields lower working capital
Any mismatch can impact on demand fulfilment or higher working capital or loss of customer.
Inventory optimization is done at the SKU level by analyzing demand variability, lead time
supply chain activity costs, inventory handling and stock carrying costs,
and customer service requirements to determine the best inventory..
Transportation cost contribute around one third of supply chain cost in India and approx half in Developed economy. In Indian context it does not mean efficient transportation, instead its 31% of supply chain goes to inefficiency and other factors. In Transportation Operating issues like volatile freight rates, fuel costs, capacity, inefficient route planning, port and highway congestion, empty miles and productivity impediments are some of the key challenges. We perform transportation modelling and simulations for your network which evaluates alternate transportation modes, alternate fleet, alternate route & optimises costs.
Supply chain network includes transportation, production, inventory and distribution. So network optimisation considers end-to-end activities and then perform optimization in order to determine the efficiency and cost scope of improvement. Today Controlling and reducing supply chain costs are major goals for most companies but also making the supply chain less complex and more responsive have become equally important. In our approach we first baseline all factors and than model it for optimised value.