Supply chains are facing new pressures as companies seek cost savings

Supply chain professionals are in the limelight in 2024, but not for the reasons many may think. A recent survey from Boston Consulting Group found that 65% of executives are prioritizing supply chain and manufacturing costs as the biggest levers for organizations to pull for cost savings. This trumps traditional cost-reduction areas such as labor and nonlabor overhead costs (cited by 52%).

“Lingering uncertainty, the need to reshape operations for the future, and disruptive technologies (such as generative AI) are motivating leaders to put cost management at the top of the to-do list,” the report indicated.

BCG surveyed over 600 global executives across various industries for its report, “The CEO’s Guide to Costs and Growth.”

Not surprisingly, respondents cited geopolitical dynamics as an issue that will test supply chain resiliency in 2024. The result is that they believe investment is necessary to stay resilient.

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