Understand the Pitfalls of IBP Before Embarking on a Supply Chain Transformation
Logistics Viewpoints
MARCH 6, 2023
The simplified assumptions allow companies “to manage margins, supply chain costs, and inventories”, but “it does not enable them to manage enterprise costs, profit, and working capital.” Freight costs and capital intensity are 10 to 15% lower—and customer delivery penalties and missed sales are 40 to 50% lower.
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