Although good CFOs never take their eyes off spending you need to be very careful about trying to wring too much cost out of your supply chain This is where big data analytics can go awry Many CFOs deploy big data analytics to drive down supply chain costs and often they re rewarded on that metric Believe me I love cost cutting as much as the next CFO But there s a point of diminishing returns If you drive your costs down to zero your rev enue could be zero too Cost cutting techniques such as using sole source suppliers lowest cost providers and plants in countries where labor is cheap est can be recipes for disaster As your supply chain costs fall your risk can soar If a brittle supply chain snaps an outage at a single site halts your product flow costs can go A NUMBERS GAME Big data can drive down supply chain costs but beware It can also cut revenue 8 REASON ISSUE 2 2015

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