Approach material cost reduction
Reduction of cost is a main aspect for every procurement organization. Particulary if you need results within a short time, the external support from the convivax team could be very reasonable. The optimization of cost does not automatically mean to loose quality and reliability. From our experience both is possible – reduction of cost with stable quality at the same time.
With the convivax procurement support you will reach your targets faster and with better results in most cases.
Analysis of cost reduction potentials
At the beginning of a project we analyse together with your team the as is situation. Are there potential cost savings? How big are the savings? To find out we analyse the important commodities and the main suppliers. At the end you will get an estimation of potential savings for every single commodity and every supplier. At the same time this could be the basis for a variable payment.
Together with your team we implement all identified measures with focus on timeframe, risks, effort and savings. This means that we analyze supplier markets and execute RFQs or negotiate with suppliers for example. For many materials/ services we have already a market overview and a long list of qualified suppliers.
As a typical result of the optimization process, we have a new material field strategy, in most cases combined with a consolidated supplier portfolio. In many cases we achieve double digit cost reductions.
As alternative or in addition to the material related approach we could address the cost reduction issues directly to main suppliers. Either with negotiation or in common workshops we identify and implement measures to reduce the cost. At the end we have a strengthened relationship between customer and supplier based on a more competitive basis.
As an additional result of the analysis phase you will get an estimation for the need consulting days to implement the measures and realize the results. If you prefer we could define this estimation as a fix payment with no further risks.
Based on savings
As 2nd model we offer a variable payment based on the realizes savings. Either in combination with a reduced daily rate or to 100% variable, so that we share the risks completely with our clients.