Supply Chain Budget & Efficiency Benchmarking

See how supply chain costs compare to industry and regional peers

We are doing business in an era of unprecedented change: Supply chain executives must contend with more frequent and unexpected supply chain interruptions, new customer demands and advancing technology. 

Gartner benchmarking on supply chain budget helps you navigate disruption: Through our interactive, online tool, create informative and comparison views of your supply chain budget. 

Key Benefits of Supply Chain Budget Benchmarking:

  • Shift supply chain budget to address changes in capacity and demand
  • Reduce supply chain costs while maintaining quality
  • Defend against severe supply chain budget cuts 
  • Identify opportunities to improve operational efficiency
  • Build the business case for future investment

Download the sample report to learn more about Gartner’s supply chain budget benchmarking.

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    Supply Chain Budget Benchmarking Metrics Index

    • Total supply chain costs
    • Spend on supply chain planning, sourcing & procurement, logistics, supply chain technology and central supply chain management
    • Spend in manufacturing and customer fulfillment
    • Level of outsourcing and automation

    Gartner support for supply chain benchmarking

    Supply Chain Budgeting FAQs

    Key steps in the supply chain budgeting process are:

    • Visibility: Advocate for cost visibility as well as operating visibility to enhance risk management and customer experience.
    • Value targeting: Quantify and prioritize supply chain budget opportunities through rigorous measurement of failures, defect rates and inefficiencies.
    • Collaboration and shared ownership: Support and align with budget owners for logistics operating expenses and inventory.
    • Accountability and alignment: Drive reduction targets into the supply chain budget to ensure that supply chain’s improvement efforts are supported by business stakeholders.
    • Initiatives to meet supply chain budget targets: Implement improvements via design, planning and resource allocation.
    • Monitoring and control: Drive continuous improvement of the supply chain budget via ongoing measurement.

     

    Key steps in preparing a logistics budget include:

    • Prioritizing quick-win initiatives (such as improving rates and prices, changing processes and eliminating waste) to create immediate value.
    • Collaborating with carriers and suppliers to identify ways to improve operational cost performance and reengineer outdated processes.
    • Aligning closely with the business stakeholders who make decisions impacting logistics strategies. 

     

    Supply chain costs support margin enhancement for the enterprise. At an organization or function level, supply chain costs fund supply chain key initiatives such as supply chain planning, supply chain customer service and collaboration, logistics strategy and manufacturing operations. Supply chain costs may include transportation cost as a percent of gross sales or warehousing and distribution center operating cost as a percent of gross sales.