Drive Distribution Center Costs Down and Profitability Up

Cost management shifts towards a continuous, granular cost-to-serve analysis model


Knowledge really is power

The power of knowing what is driving your costs on a day to day, item by item basis allows you to collaborate more effectively with your peers outside the DC and even outside the supply chain. That will help everyone meet the external objectives (e.g. getting a low-cost, reliable source of supply, winning a new customer or improving customer satisfaction) while focusing on lowering costs within the supply chain in general and the DC in particular. That in turn will drive increased profitability for your company. And it will transform a DC manager from someone struggling to contain costs to someone helping to drive profitability.

Francis Tomany is Senior Director of Product Management with Manhattan Associates, a global supply chain solutions provider.

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