Supply chain executives must contend with new customer demands and advancing technology, as well as high inflation and macroeconomic pressures. Navigate disruption with our supply chain budget benchmarking tool.
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Introducing Supply Chain Budget Benchmarking from Gartner
Supply Chain Budget Benchmarking: Benefits, Keys and Steps
Benefits of supply chain budget benchmarking
- Cost visibility, driving risk management and customer experience
- Accountability & alignment, advancing budget targets
- Monitoring & control, enabling continuous budget improvement
Keys to effective budget benchmarking
- Prioritize quick wins such as better rates or reduced waste
- Identify initiatives to improve planning and resource allocation
- Collaborate with carriers & suppliers on supply chain costs
How to
prepare for budget benchmarking
- Determine the scope of the data—e.g., organization or BU
- Identify key stakeholders who will submit survey data
- Appoint a survey manager to gather budget benchmarking data
Supply Chain Budget Benchmarking: Challenges and Solutions
Defend against supply chain budget cuts
It's hard to defend against supply chain budget cuts in a discussion with the CFO or Board. Lead with budget benchmarking insights to justify spend, protect new investments and build a business case for future funding.
Balance cost reduction with service & quality
How do you reduce supply chain costs while maintaining service and performance quality? Our budget benchmarking tool pinpoints specific areas to adjust spend and resourcing to drive mission-critical business priorities.
Respond to changes in capacity & demand
When changes in capacity and demand arise, resource allocation must shift. Supply chain budget benchmarking can help: Establish a baseline of supply chain spend and staffing and compare against your peers.
Features of Gartner's Supply Chain Budget Benchmarking
The metrics index enables informative views of your supply chain budget
Gartner's Supply Chain Budget Benchmarking measures total supply chain spend and staff levels, as well as the level of automation and outsourcing in the supply chain organization.
Measure supply chain spend in an effort to balance cost pressures and business growth
We measure spend for key categories—e.g., planning, sourcing & procurement, supply chain technology, customer fulfillment, warehousing, personnel, and central supply chain management.
The industry index enables comparison views of your budget versus true peers
Major industries indexed include manufacturing, logistics, healthcare & pharmaceuticals, consumer goods, food & beverage, retail, technology, transportation, and energy & utilities.
Strengthen hiring and retention practices by assessing supply chain costs for staff
We examine the distribution of supply chain FTEs across functional areas, and we assess the percentage of contractors/seasonal FTEs comprising the total supply chain FTE population.
Hear from your supply chain peers
Supporting Distribution Build-out with Cost and Benchmarking Insights
Read how Gartner’s cost and benchmarking insights helped a consumer goods manufacturer expand its operational footprint in Canada.
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