{"id":4241,"date":"2024-08-22T09:40:55","date_gmt":"2024-08-22T07:40:55","guid":{"rendered":"https:\/\/interim-manager-einkauf.de\/?p=4241"},"modified":"2024-08-21T10:00:07","modified_gmt":"2024-08-21T08:00:07","slug":"costdown-pmi","status":"publish","type":"post","link":"https:\/\/interim-manager-einkauf.de\/en\/costdown-pmi\/","title":{"rendered":"Procurement Teams: It\u2019s time to fight back and reduce costs"},"content":{"rendered":"

\ud83d\udcb5 Attention Procurement Teams: It\u2019s time to fight back and reduce costs<\/p>\n

\ud83d\udc49The August Purchasing Managers Index (PMI) i.e. shows a promising trend for Procurement pros: \u201cThe average prices charged for goods and services increased globally in July at the joint-slowest rate since October 2020″.<\/p>\n

Cost-efficient Procurement ensures financial stability and enables investment in innovation and growth amid economic uncertainty. Thus, reducing costs is critical for enhancing an organization’s profitability and operational efficiency. In 2024, cost management has become a top priority for many Procurement teams as it is even more crucial due to rising inflation, global supply chain disruptions, weak economies, and increased competition.<\/p>\n

\ud83e\udef0\ud83c\udffbAfter years of 10%+ increases, it is time to fight back, if you haven’t started yet.<\/p>\n

No take it or leave it anymore. It is time to act and end the era of no pushback.<\/p>\n

\u2705What to do;<\/p>\n

\ud83d\udcccRenegotiate contracts to secure lower prices, adjust inventory, explore long-term agreements<\/p>\n

\ud83d\udcccReassess supplier pricing strategies, pass savings to product pricing, and invest in innovation or value-added services.<\/p>\n

\ud83d\udcccCollaborate with suppliers to optimize cost structures, ensuring mutual benefits.<\/p>\n

\ud83d\udcccMonitor market trends closely to ensure timely responses, maintaining a competitive edge<\/p>\n

\u2705Selected value levers:<\/p>\n

\ud83d\udcccSkills & Human Power: Invest in skills (Negotiation & Cost Management training)<\/p>\n

\ud83d\udcccSupplier Consolidation (but understand the supply risk that comes with it)<\/p>\n

\ud83d\udcccDemand Management (Involve stakeholders)<\/p>\n

\ud83d\udcccEstablish a Supplier Negotiation program to achieve better terms<\/p>\n

\ud83d\udcccCost Structure Analysis: Identify opportunities for cost reduction<\/p>\n

\ud83d\udcccStrategic Sourcing: Improve your strategic sourcing. Select suppliers that offer the best value rather than just the lowest price.<\/p>\n

\ud83d\udcccCategory Management: Manage Categories as strategic business units, and efficiency<\/p>\n

\ud83d\udcccRisk & Compliance Management: Avoid unplanned costs from unstable supply chains, missing risk monitoring, and not adhering to regulatory<\/p>\n

Procurement must play a pivotal role in driving cost reductions across the organization. The combination of supplier consolidation, demand management, strategic sourcing, risk & compliance management, and continuous skill development creates a comprehensive approach to cost management.<\/p>\n

 <\/p>\n

targetP evolving procurement<\/a><\/p>","protected":false},"excerpt":{"rendered":"

\ud83d\udcb5 Attention Procurement Teams: It\u2019s time to fight back and reduce costs \ud83d\udc49The August Purchasing Managers Index (PMI) i.e. shows a promising trend for Procurement pros: \u201cThe average prices charged for goods and services increased globally in July at the joint-slowest rate since October 2020″. Cost-efficient Procurement ensures financial stability and enables investment in innovation and growth amid economic uncertainty. Thus, reducing costs is critical for enhancing an organization’s profitability and operational efficiency. In 2024, cost management has become a top priority for many Procurement teams as it is even more crucial due to rising inflation, global supply chain disruptions, weak economies, and increased competition. \ud83e\udef0\ud83c\udffbAfter years of 10%+ increases, it is time to fight back, if you haven’t started yet. No take it or leave it anymore. It is time to act and end the era of no pushback. \u2705What to do; \ud83d\udcccRenegotiate contracts to secure lower prices, adjust inventory, explore long-term agreements \ud83d\udcccReassess supplier pricing strategies, pass savings to product pricing, and invest in innovation or value-added services. \ud83d\udcccCollaborate with suppliers to optimize cost structures, ensuring mutual benefits. \ud83d\udcccMonitor market trends closely to ensure timely responses, maintaining a competitive edge \u2705Selected value levers: \ud83d\udcccSkills & Human Power: Invest in skills (Negotiation & Cost Management training) \ud83d\udcccSupplier Consolidation (but understand the supply risk that comes with it) \ud83d\udcccDemand Management (Involve stakeholders) \ud83d\udcccEstablish a Supplier Negotiation program to achieve better terms \ud83d\udcccCost Structure Analysis: Identify opportunities for cost reduction \ud83d\udcccStrategic Sourcing: Improve your strategic sourcing. Select suppliers that offer the best value rather than just the lowest price. \ud83d\udcccCategory Management: Manage Categories as strategic business units, and efficiency \ud83d\udcccRisk & Compliance Management: Avoid unplanned costs from unstable supply chains, missing risk monitoring, and not adhering to regulatory Procurement must play a pivotal role in driving cost reductions across the organization. The combination of supplier consolidation, demand management, strategic sourcing, risk & compliance management, and continuous skill development creates a comprehensive approach to cost management.   targetP evolving procurement<\/p>","protected":false},"author":2,"featured_media":4242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[103,98,99,97,102,101,96,100],"class_list":["post-4241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-cost-avoidance","tag-cost-down","tag-cost-management","tag-inflation","tag-kostensenkung","tag-kostensenkung-einkauf","tag-purchasing-manager-index","tag-savings","entry"],"yoast_head":"\nProcurement Teams: It\u2019s time to fight back and reduce costs - targetP<\/title>\n<meta name=\"description\" content=\"Procurement Cost Management: It\u2019s time to fight back and reduce costs.Cost-efficient Procurement ensures financial stability and growth.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/interim-manager-einkauf.de\/en\/costdown-pmi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Procurement Teams: It\u2019s time to fight back and reduce costs - 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