Are You Executing A Cost Savings Strategy or Are You Just "Winging It?"


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By Charles Dominick, SPSM, SPSM2, SPSM3

Picture of Charles Dominick, SPSM, SPSM2, SPSM3

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.

Do You Want a More Rewarding Procurement Career?

Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.

Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!


Need Better Performance From Your Procurement Team?

Are you a procurement leader whose team isn't achieving the results you know are possible? Maybe it's not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.

You need a performance improvement plan that's easy to implement and quick to produce results. The NLPA can help.

Download our whitepaper "The Procurement Leader's Guide To A More Successful Team." You'll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.


Are You Getting The Most Out of Your NLPA Membership?

Members of the NLPA get more than just articles like this by email. As a member, you also get access to:

  • The Procurement Training & Certification Starter Kit
  • The latest Purchasing & Supply Management Salaries Report
  • Leading-Edge Supply Management™ magazine
  • Members-only webinars 10x per year
  • And more!

If you haven't been taking advantage of these benefits, why not log in and start now?