Are You Executing A Cost Savings Strategy or Are You Just "Winging It?"
Take this quiz before your CEO asks this question!
PurchTips - Edition # 5
By Charles Dominick
Cost Savings Strategy Quiz
1. Do you know how purchasing-driven cost savings will impact your company's financial statements?
2. Are your company's definitions of savings and avoidance aligned with financial reporting?
3. Do you have a written cost savings plan that includes target dates and dollar values for each step of the cost savings process?
4. Do you have a classification system for your purchases that is designed specifically to facilitate the identification of savings opportunities?
5. Do you know how to properly analyze your spending including how to build a spend profile?
6. Do you use a certain set of attributes to determine the priorities of your savings opportunities?
7. Do you utilize all four techniques for achieving savings with current suppliers?
8. Do you use a documented step-by-step process for your sourcing activities?
9. Are you reporting your savings to executive management in a meaningful way?
10. Are you applying continuous improvement to your cost saving processes?
If you have answered "no" to any of these questions, you may be "just winging it" in the eyes of your CEO.
Spotlight On Professional Development Opportunities
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For more information on this 15-Minute Tutorial and other online classes for purchasing professionals, visit:
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