How to understand that supply chain is a new source of profit

Supply chain cost management (cost? Management? Are you online? Supply? Chain) includes all material costs, labor costs, transportation costs, equipment costs, etc. Expenses incurred by enterprises in the process of purchasing, production and sales to support the operation of supply chain. Supply chain cost management can be said to be a cost-based supply chain management method and a new idea of effective supply chain management. ? Supply chain cost management is a cross-enterprise cost management. Its vision transcends the enterprise, but extends the meaning of cost to the activity cost of the enterprise and the transaction cost between enterprises in the whole supply chain. Its goal is to optimize and reduce the total cost of the whole supply chain.

According to the report of Mercer Management Consulting, an internationally renowned consulting company, nearly half of the managers interviewed regard supply chain cost management as the top of the company 10 event. Kearney Consulting also pointed out that the supply chain can consume up to 25% of the operating cost of the whole company. For an enterprise with a profit margin of only 3%-4%, even if the supply chain cost is reduced by 5%, it is enough to double the profit of the enterprise, which shows that its impact is extraordinary. It can be said that if we grasp the cost of supply chain, we will grasp the real core competitiveness.