Our Cost Reduction service has been designed to help organisations take cost out of their supply chain.
Our streamlined yet thorough approach identifies quick-win and strategic opportunities generating measurable and sustainable benefits – delivering greater value for your organisation over the longer term.
Organisations will recognise cost reduction as a key objective at some point in their business lifecycle. While we always advocate long-term and sustainable cost cost-savings, there will often be a short-term focus, particularly in times of economic hardship, on achieving instant cost reductions.
We recognise that organisations may be caught in a conflict between the need for procurement resource and skillsets (often for short but intense periods) and the cost of additional headcount that may not represent an ongoing requirement. However, the need for organisations to manage both their costs and supplier performance remains paramount.
This service is an ‘on-demand’ model. In a nutshell, it allows organisations to access highly experienced procurement professionals to lead and deliver projects when there is immediate need to bring costs under control: for instance when you have insufficient in-house resource or sector experience. Our clients engage us across a range of activities, be they individual sourcing events and tenders in specialised categories, or a wider-ranging programme of projects within a larger organisational cost reduction programme.
Our engagements will typically start off with an Opportunity Assessment. This follows a simple four-step approach to identifying saving opportunities:
What your organisation is spending its money on?
What are the key focus areas based on risk, strategic importance and opportunity?
What is the potential for cost reduction or value creation?
Are we able to realise this potential and how?
What benefits can you expect from our cost reduction service?
Support when you need it, not when you don’t: A truly ‘on demand’ service.
A streamlined yet thorough approach: Establishing quick-win and strategic opportunities.
Best practice procurement solutions: Delivered at-pace, in a pragmatic non-intrusive way.
An outcome-focused service: We won’t just make recommendations and walk away – we’ll see a project through and deliver results.
- For example, expenditure reviews can achieve annual cost savings of 15%-20%, but we have often seen savings reach up to 50%. These saving figures don’t include the added benefits realised through service improvements, innovations and risk mitigation.
- We have consistently delivered significant cost savings and service improvements across all categories: and introduced more capable suppliers for our clients, too.
- To read more about how we have done this, see our case study pages. You can also read the testimonials we received having completed our engagements