I hope that you have enjoyed the article “Does Cost Containment Have 2 C’s Or 4?

Don’t miss updates on Procurement & Supply Chain, Subscribe here!

In the article, I give tips on how to achieve cost containment. I think that if we flip around the points a little bit and turn them into questions, you can have an assessment on whether or not your organization is truly focused on cost containment.

A self-assessment is important. I see a lot of companies say “Oh, we’re struggling with rising prices.” But what are they doing about it? Or, are they doing enough to combat inflation? Using these questions as an assessment will shed some light on that:

1. Is your spend adequately consolidated or are you still using too many suppliers in certain categories? (Or, even worse, do you not have any visibility into the number of suppliers you are using in each category?)

2. When you last sourced in high-spend categories, did you have a large number of bidders and allow newer, unfamiliar suppliers to be considered? Or did you invite the same cast of characters consisting of only three or four suppliers?

3. Do you have long-term contracts in place? If so, how much of your spend is covered under contract?

4. How closely do you work with your suppliers to identify improvement opportunities? Or do you just place orders and expect to get them in without any further expectations on your suppliers?

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

More Posts

Follow Me:
LinkedIn