Do you need to optimize sourcing and procurement?
Do you need to cut costs and quickly improve your organization’s bottom line?
We are experts in providing solutions.

Cost reduction programme

Our cost reduction programme reduces expenditure, not the company’s competitiveness.

There are ways and means of doing things. In this case, it’s possible to just “cut costs” or reduce costs without renouncing necessary or potentially productive resources. Without limiting the potential for growth; without changing supplier, structure, production model… All in a swift, sustainable manner. You can see this in our Accelerated Cost Reduction Programme (ACRP).

The ACRP is based on 4 basic pillars:

  • Define and implement appropriate action in order to optimise control over expenditure, consumption  efficiency and improve negotiation with suppliers
  • Integrate “savings levers” that help to rationalise expenditure and investment
  • Reduce costs at source, starting with internal demand. And in turn improve supplier quality and prices
  • Redesign services and optimise the management model

The diagram shows the effect that the execution phases and “savings levers” have on expenditure.

Our cost reduction programme also integrates a wide range of other measures:

  • Evaluate alternatives in order to better respond to needs at a lower cost.
  • Redefine hiring  and contracting strategies and optimise the Supplier Panel.
  • Launch the negotiation of materials and services onto the market in order to achieve price savings.
  • Delivery tracking and the implementation of      corrective action regarding consumption levels/supplier contract compliance.
  • Adjust demand to real user needs (eliminate unnecessary expenses)
  • Evaluate alternatives in order to better respond to needs at a lower cost.
  • Redesign services /products with expenditure efficiency criteria.
  • Combination of profiles: Consultants who are experts in cost reduction and specialist Buyers in expenditure categories.
  • Variable remuneration, with a commitment to obtaining real results and savings.

 

 

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