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Supply chain management can be a boon or a bane if sound cost-cutting strategies are not in place. Additionally,
businesses need to adapt to the dynamic technological innovations in order to maintain their competitive edge. Let’s see
what the numbers have to say.
As per Marketwatch, Amazon’s shipping costs witnessed a rise from $11.5 billion in 2015 to a staggering $21.7 billion in
2017. Additionally, according to an Eyefortransport survey, 24.7% of supply chain professionals claim that delivery costs
are the biggest challenge for B2C e-commerce companies. Worse, studies by Zurich Insider suggest that around 63% of
companies do not use any technology to monitor their supply chain performance.
5 ways to cut down Supply Chain cost
1. Automate, Automate and Automate
• More and more companies are investing their time, effort, and money into enhancing automation at warehouses, and for a good reason. With the rising labor and land costs, any effort made towards cost reduction
is a smart move. You’ll be surprised to know that labor costs constitute 65% of the majority of warehouse facilities’ operating budgets.
• So get on the automation bandwagon but before you do that, make sure to get a professional’s help to understand where you can integrate automation in your existing operations.