SC Cost Optimization Playbook Manufacturing Operations

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Supply Chain Cost

Optimization Playbook for


Manufacturing Operations
Manufacturing contributes to organizational value by increasing efficiencies that support improved cash flow. This demands safe,
reliable and effective operations, as well as agility and resilience to enhance the performance of the overall supply network. This
playbook outlines both short-term tactical cost improvement opportunities as well as long-term transformational changes.

Decision Complexity and Systems, Data and


Action Category Time Frame Manufacturing Actions
Execution Difficulty Analytics
Improve Short term Do basic planning and Simple planning models, • Invest in enterprise manufacturing intelligence.
Reduce waste and (weeks/months) scheduling for efficient lean and continuous • Equip operators with augmented reality and wearables.
improve total unit operations. improvement, and • O
 ptimize capacity through improved production
cost by implementing reporting and analytics. planning.
operating changes.

Reconfigure Midterm (quarters) Rethink decision making to Design models to evaluate • Do value stream mapping.
Reduce structural cost protect against cost risks. design trade-offs. • R
 econfigure the application portfolio and manufacturing
and operating losses by networks.
designing changes for • Negotiate with contract manufacturers.
better alignment.

Transform Long term Adopt new operating tools, Apply operating • C


 onsistently develop and align the corporate
Develop operation (quarters/years) systems and practices. technologies that drive production system.
capabilities that improve decision and execution • D
 eploy a manufacturing process management
cost competitiveness. precision. framework.
• T
 ransform supply planning and scheduling to agile,
optimized network orchestration.

Gartner insights, advice and tools help manufacturing leaders balance the need for digitalization with maintaining daily output.
We can guide you to develop, implement and sustain results from cost optimization efforts and others.
Visit gartner.com/en/supply-chain to learn more about how we help businesses maximize cash flow and make transformative
investments.

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Source: Gartner
© 2023 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_2106995

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