There is high pressure on companies to increase profit and at the
same time the customers are demanding lower prices, therefore the
companies have to cut cost in all areas, making costing analysis to
the supply chain helps to lower cost and enables a company to
more easily compete based on the price.
SCC can be used as a tool to identify cost
savings and evaluate if a change project
will, or has, resulted in the cost savings the
project.
Rough standard costs measures should be
avoided instead actual costs should be
used as much as possible.
An accurate cost analysis is necessary in every
business to evaluate changes in a supply chain.