Cost Reduction Techniques and Applications
One of the greatest assets a purchasing team can bring to the table is the ability to lower the firm’s cost of goods sold. This aspect makes the purchaser, or buyer, a valuable asset to each firm. This session will provide new tools and techniques which would allow the purchasing team to be a resource which can even bring additional monies and profitability to the company even when sales are soft. Unfortunately, inept management often think they can save monies by reducing headcount which is a momentary gain coupled with a long-term loss. Having professionals on your team capable of utilizing a variety of cost reduction techniques, costs down and seeing a broad perspective of opportunities can add more than just saving but enhancing a firm’s profitability.
Some of the tools addressed include:
1) How to promote and get involved in an active cost reduction program company-wide
2) Take paperwork pour and embrace electronic media
3) Employ a corporate-wide Business Process Innovations activity
4) Utilizing a third-party aggregator (TPA)
5) Establish a Buying Consortium or Cooperative
6) Reduce inventory without losing money
7) Utilize VMI and ‘baby-k’ techniques
8) Understand how see area of risk; increased costing and sales slowdown
9) Utilizing Activity-Based Costing (ABC’s) to reduce blanket cost reductions
10) Implementing an active Value Analysis (VA) and Value Engineering (VE) program
11) Preventive Maintenance methods used to save money and keep equipment operationally efficient
12) Energy cost reductions and efficiency measures
13) How to utilize and option or futures on critical commodities
14) Applying Big Data to identify future trends and efficiencies
15) Learn how to save money and time in computer conversions
16) Learn how to apply segmentation analysis
17) When outsourcing makes for a good decision and saves money
18) How to report true value to management as a bottom-line benefit
19) And many more tools and techniques.
Who Should Attend:
This session is for managers, supervisors, buyers and purchasing agents and those responsible for seeking cost reductions and responsibilities for budgets and cost savings.