Visible Benefits at the Board Level
Supply Chain cost reduction initiatives can reduce the cost of equipment and services by over 70% for proprietary/licensed products, bundled service/solutions, and captive customers. Comprehensive strategic supply chain reviews can identify, isolate, and rectify anomalous situations like this, and systematically drive costs down across the board.
Making optimal supply chain decisions on major capital projects also compresses the cycle time to “first production.” Our experience shows that our engagements increase Return on Investment (ROI) by more than 10%, and revenue growth rate by more than 15%.
The savings achieved on these projects can fund other existing or new capital projects, producing benefits equivalent to:
Conversely, making the wrong supply chain decisions in the early stages of project planning can entail:
- Costs of damage control, remediation, lawsuits, and reputational damage from accidents or incidents that relate to inadequate management of complex sourcing decisions
- Cost of switching suppliers after engineering, procurement, and/or construction work has begun
- Penalties for late or lost production due to project delays
- Lost profits due to project delays
- Risk of changes in input costs and output prices that change the profit profile of a project, as delays accrue
Contact us for the expected benefits of supply chain optimization associated with your project.
* These estimates are based on an ‘average’ project size and configuration.
REPRESENTATIVE WIN-WIN AGREEMENTS
Below are some examples of publicly-disclosed relationships that are symbolic of the kind of success stories that we help to facilitate (although it should be clear that BSI does not claim direct credit for all of the examples below).