TheValuePropositionofSupplyChainManagement?1999AndersenConsultingCostisoneofthemajordriverstoextendthetraditionalenterprise.60%ofvariablecostsofanorganizationaredrivenbydecisionsthatareexternaltotheorganization.Manu-facturerTier2SuppliersTier1SuppliersWholesalerorDistributorRetailerorDealerConsumers“ThePowerofBusinesstoBusinessIntegration”BenchmarkingPartners,December1998?1999AndersenConsultingThepasteffortshavenotbeenwithoutconsiderablerewards.Logisticsexpenseincludes:FinishedGoodsTransportationWarehousingOrderEntry/CustomerServiceAdministrationInventoryCarryingCost@18%—NorthAmericanAnnualTotalLogisticsCostChangeinPercentage—Source:CouncilofLogisticsManagement1997AnnualConferenceProceedings,LogisticsCostsandCustomerServiceLevels(HerbertW.Davis&WilliamH.Drumm)-50%-30%-10%10%30%50%83848586878889909192