Next Level Purchasing - Helping Purchasers Become Indispensable
Home   |   Contact Us   |   Email This Article To A Friend
Photograph of Charles Dominick, SPSM This is the Web-based version of this article. Click here for the printer-friendly version.
  * More Purchasing Articles

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

Are these 7 little-known negotiating mistakes letting your suppliers laugh all the way to the bank? Look, even if you've successfully negotiated price reductions, you may not be getting the best deals possible. Knowing a few techniques is not enough. You especially need to know what NOT to do in a negotiation. In just 15 minutes, Next Level Purchasing's 15-Minute Tutorial "Negotiation No-No's" will teach you how to avoid the common negotiation mistakes that can cost your organization dearly. A "virtual negotiation" exercise allows you to assess your negotiation prowess.

When you register, you will get immediate access to the tutorial. You can take the tutorial whenever you want to over a 60-day period.

Plus, your online learning experience is 100% risk-free. If you are not satisfied for any reason, let us know within 7 days and you'll get a hassle-free refund.

For more information on this 15-Minute Tutorial and other online classes for purchasing professionals, visit:

FREE Offer!!!

Is poor supplier performance driving you crazy? You won't have to work so hard if you apply certain proven techniques for evaluating and improving supplier performance. If you have wanted to implement a supplier ratings program but had difficulty getting started, Next Level Purchasing's online mini-course "Managing Supplier Performance" (MSP) is the perfect class for you. And, oh yeah, it's FREE!!!

To sign up for "Managing Supplier Performance", visit: