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The Time Is Now To Generate Cost-Savings for 2025

As we crest the month of June and the inevitable arrival of the mid-year, it’s time for an urgent call-out to those interested in driving cost-savings activities that result in margin improvements for 2025. If your business has a goal of improving margins in the face of challenged revenue growth or if it is growing and you want to see the margin percent continue to be robust, time is running short to execute these cost-savings initiatives in time to show results in 2025. Supply chain initiatives will generally take 4-6 months to assess, strategize, execute, and generate results.

Many businesses, especially in the B2B sector, are facing stagnated growth in revenue. As we’ve referenced in a recent blog post, CEO and business leader sentiment is currently negative and apprehension about uncertain economic and geopolitical dynamics are causing decision-makers and, to a certain extent, consumers, to make conservative decisions about the money they spend on goods and services. Given this dynamic, it’s likely B2B businesses will experience challenges in growing revenue until the first half of 2025.

Some businesses are starting to look at how they can lean-out expenses to maintain that profitability margin. Looking to your supply chain should be part of this exploration. Depending on your business, supply chain costs can represent a significant portion of your cost of goods. If you include operations, it’s most of the cost of goods.


Direct material spend should always be monitored for market competitiveness, supply segmentation, and opportunities to leverage better pricing and/or payment terms. But don’t forget about opportunities in MRO and indirect materials and services. Especially if your company has multiple locations that are all managed at the site-level, there could be a significant cost-reduction opportunity.


Transportation and Warehousing can represent a significant portion of the cost of goods. In general, if you have multiple warehouse locations (especially if they are leased or 3rd party), the decision to take on that additional spend must be thoughtful, strategic, and justified, since it’s generally a non-value-added cost. Unless it drives a strategic partnership with a customer or is a requirement to compete in a specific (high margin) market, all efforts should be taken to reduce the amount of external warehouse space leveraged.

Transportation costs are highly correlated to the quantity of goods over the distance shipped. The smaller the quantity and higher the distance, the more expensive it will tend to be. Looking for opportunities to max-out load quantities over longer distances will not only reduce your costs per pound, but also result in a positive impact on the environment by reducing the carbon footprint.


Inventory is also a waste, although sometimes a necessary and justified waste. The play here is to reduce the amount of inventory to the extent that it does not impact your ability to deliver to your customer’s requirements. With that being said, anything that is purchased and eventually cannot be used (Obsolete) is a direct waste to the business. Likewise, inventory that sits for longer than it should is just tying-up cash and creating more risk for Obsolescence as time goes on. An analysis of your inventory positions to determine any that are overstocked may result in a temporary reduction in purchasing needs, which puts more cash back in your pocket.

Achieve Supply Chain Success with Waypost Advisors

At Waypost Advisors, we work with companies everyday that benefit from improved supply chain management and execution. Our industry-experienced consultants specialize in providing expert guidance and support to businesses looking to optimize costs, minimize inventory, and drive pride in their teams. Our comprehensive approach leverages cutting-edge technologies and industry best practices to help companies achieve measurable and sustainable results. By partnering with us, clients can streamline their operations, reduce inefficiencies, and enhance customer satisfaction. Contact our team today and let Waypost Advisors help you achieve your goals.

Waypost Advisors is an end-to-end supply chain and resourcing solution. We offer expertise in procurement, inventory, project management, planning, transportation & warehousing to fit the needs of your B2B manufacturing or distribution company. Our advisors can provide you with the resources and expertise to tackle your supply chain challenges while allowing you to still focus on running your business.