Budget Development

The Supply Chain budget development process is critical to the success of an organization. Clearly understanding the dynamics of your current spend and integrating that into a robust analysis of forecasted changes in supply markets, logistics costs, labor costs and economic movements provides the organization with the required insight to maintain a competitive position in the marketplace and make the right business decisions.

Understanding and forecasting the supply market dynamics, material cost movements and service cost movements enable you to develop robust standard costs that can be used to improve the accuracy of the annual operating plan of your company. In addition, the standards that are established for materials and services will become a baseline for measuring year over year cost reductions and the relative competitive position of the company in procuring materials and services.

The consultants at Northern Star have years of direct experience with material cost forecasting, standard cost setting, and annual supply chain budget development.