Supply Chain Cost Management: The AIM & DRIVE® Process for Achieving Extraordinary Results

Quantitative and Qualitative Factors

Some benefits or risks may be quantifiable, while others may not. As mentioned earlier, all quantifiable savings should be carefully estimated and validated to the best of your ability. It has been my experience that many teams like to fudge the numbers to look good for their management. This is a practice that should be avoided, since it always catches up with you when you try to verify savings. When in doubt, use “to be determined” in the worksheet. In the example of Anything Inc., the strategy of increasing customer knowledge by creating in-house technicians for major accounts has clearly quantifiable savings, as measured by the reduction in number of field visits, which the team estimated to be $3.8 million. ...