Benchmarking Success (BMS) Director Steven Thacker has revealed some interesting insights from the BMS databases of over 800 supply chains. Traditional thinking would seem to agree that for an organisation to achieve the highest levels of service, supply chain costs will rise, almost exponentially, as service levels reach the 90%+ level. Not true.
A recent survey of the BMS database focused across all major industry sectors, to test the relationship between cost and service. In every case, those organisations achieving best in class service performance did so at almost half the supply chain cost of the average performers! Why? Because a focus on high service performance leads by default to improved processes, greater efficiency and much lower costs.
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