With many companies seeking to cut costs during the recession, a PricewaterhouseCoopers (PwC) report found that supply chain management offers a great way to increase efficiency and prevent a business from losing money through problems in the chain.
The report, published in December 2008, found that companies which reported problems in their supply chain noted a distinct drop in the sale price of their product, creating a problem almost as large as the issue of high costs during the ongoing recession.
Companies with complex or simple supply chains have the opportunity to scale back costs through redesigning a supply chain.
Contracting a third-party supply chain management company can provide solutions for any business hoping to cut costs or increase efficiency in their supply chains.
John Coyle, professor of supply and information systems at Pennsylvania State University said in a CentreDaily.com report: "Supply chain expenditures in many organisations are a large expense, but when managed effectively, supply chains not only contribute to lower costs but also increase sales revenue and improve cash flows.
"As a result, effective and efficient supply chains can help improve the return on assets and shareholder value."
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