Do you know which forces are threatening your job security?
We’ve identified the top seven reasons purchasing executives are losing job security, which we reviewed in a cloud conference earlier this year.
In the meantime, let’s look at one reason purchasing executives are losing job security: the lack of a repeatable cost savings strategy.
Repeatable Cost Savings Strategy
A repeatable cost savings strategy is a set of actions that you can easily duplicate to achieve real savings.
Identifying and executing on supplier cost savings is an exceptional experience – how do you go about capturing the formulas and processes that led to your success? Can you document the steps and processes, tools and skillset, personas and actions that led to the success? Replicating your success means you have a full understanding of how you got there, and how and where you could adapt the strategy with other suppliers. It also means knowing what doesn’t work and eliminating it from your toolkit.
Certainly, every supplier presents a different set of circumstances and has different actors, goals, and requirements. Having a winning strategy that can be documented and used across the board is what differentiates world-class purchasing organizations from the rest.
Steps to Design Repeatable Strategies
Among the steps for designing repeatable cost savings strategies are:
- Finding an approach to identifying Cost Savings for Every Part.
- Implementing a non-disruptive toolset to execute and track cost savings achievement.
- Analyzing business strategies to identify any gaps and anomalies.
- Implementing changes from “lessons learned” from the analysis.