How to Improve Cost of Goods Sold Horizontally Across the Supply Chain

Improving Cost of Goods Sold and Least Landed Cost

Customer demand is power. This power has been used to negotiate pricing from a purchasing perspective for many years.

However, as we experienced in the pandemic, this power was short-lived without visibility and control across all trading partners through the supply chain network, where each participant plays a role in making and delivering products for the end consumer.

In the past, this problem was more manageable as retailers and brand owners also owned the upstream assets to create products.

Today, most demand is owned by the retailer, the brand owner, or the e-marketplace consumer from an omnichannel perspective (depending on how retail or the omnichannel is structured). The balance of the supply chain network is outsourced to trading partners.

Today, you need a network platform to solve business network problems. Enterprise thinking is over.

• If you have 200 co-manufacturers, who’s the enterprise?If you have 800 suppliers, who’s the enterprise?
• If you have 1000 distributors, who’s the enterprise?
• If you have 600 carriers, freight forwarders, and customs brokers, who’s the enterprise?

Understanding your horizontal cost of goods sold and how to apply a real-time demand-driven supply chain network end-to-end is the only way to generate shared value for all trading partners.

Download this white paper and find out how you can strengthen your balance sheet and improve your P&L with a network strategy. Achieve cost reductions across the network with supply-demand matching and optimized inventories across every node, to achieve superior service level targets and greater revenues at the lowest landed cost.