1、Focus on Operating Outcomes,Not Reduction Targets,to Optimize Supply Chain CostPaul Lord,Senior Director Analyst24 May 2019Gartner ResearchFocus on Operating Outcomes,Not ReductionTargets,to Optimize Supply Chain CostPublished:24 May 2019 ID:G00382831Analyst(s):Paul LordSupply chain and business rol

2、es must align and collaborate aroundoperating outcomes,rather than reduction targets,to optimize total cost.Supply chain leaders can use this research to adjust how they engagestakeholders and propose initiatives that achieve breakthrough costimprovements.Key FindingsReduction targets for cost and i

3、nventory create apprehension and resistance amongstakeholders,inhibiting the collaboration and innovation required to drive and sustainimprovement.Attempts to reduce cost within individual sites and functions put quality and service at risk,orcreate constraints that limit improvement potential.Compa

4、nies often pursue too many initiatives simultaneously without investing in the talent andtechnology required to enable improved performance.Supply chain organizations focusing on improving strategically aligned outcomes havedemonstrated that trade-offs among cost,service and quality are not always n

5、ecessary.RecommendationsSupply chain leaders pursuing cost optimization should:Drive collaboration and innovation for improved performance by aligning multiple functionsaround cost-optimized operating outcomes.Enable decisions by defining metrics and developing cost analysis models that align to the

6、scope and performance objectives of specific operating outcomes.Justify investments by proposing initiatives based on their potential to impact performance anddeliver improvement to specific operating outcomes.Table of ContentsAnalysis.2Big Picture Approaches Are Useful but Not Fully Actionable.4Foc