C. P. Aruna Kumari, Y. Vijaya Kumar
Abstract: Most of the companies are focusing on cost reduction to ensure that there is an effective supply chain. For this there is a need for Indian markets to improve their supply chain processes. In the case of automobile industries; there is complexity in supply chain due to design and build vehicles globally. The complexity often stands in the way of profitability and higher shareholder value etc. In a highly challenging and competitive environment; where supply chain is required for organizational competitiveness; an efficient and effective supply chain strategy is a must. To improve profitability and efficiency; automotive players are seeking ways to achieve operational excellence; reduce operating cost and enhance customer service through efficient supply chain management. In this paper an attempt has been made to provide a structured approach to Supply Chain cost management in the form of mathematical format in order to conclude to optimize outbound supply chain cost with the given set of different costs.
Keywords: Supply Chain Strategy, Cost Reduction, Total Cost, Structured Approach, Operational Excellence, Complexity