Enormous opportunities in supply chain management are shown in the current study in the field of Supply Chain Management that indicates that a 1 percent reduction in the cost of raw materials purchased the equivalent of 12 to 18 percent rise in sales growth. To discover more details about supply chain management you may check here https://www.jeffersonmaguire.co.uk/sectors/logistics-and-supply-chain.
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It provides a great opportunity for companies that can take advantage of this cost reduction at this time of economic stagnation. Companies must find ways to improve their bottom line when their sales revenue is flat or declining.
There are several reasons why this kind of reduction may, among them the use of new technologies and better, more and more companies from which source and the increasingly sophisticated approach to managing the supply management function
As mentioned, one of the factors that allow a reduction in costs is due and scale procurement of technology that can help reduce the wanton spending while allowing the company to work more efficiently with a wider range of suppliers.
This technology can simplify the sourcing process and help actively manage the total cost of resources. Included in the newer technology is e-Sourcing, which has become more sophisticated and popular and became even more integral e-procurement initiatives.
Once the sourcing process has been completed and the material has entered the supply chain of other technologies can be utilized. Technologies such as RFID that provides real-time data defective products, can improve the tracking of goods and tools supplier managed inventory processes.
Recruitment of skilled staff aware of these technologies and the impact they may have on the company's ability to reduce the overall cost of the supply chain operations.