Welcome back to another installment of Whitepaper Wednesday here on the Purchasing Certification Blog. This week, I’ll be reviewing a whitepaper entitled “Cost Savings That Stick” from the Corporate Executive Board and Toolbox For Finance.

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This whitepaper essentially dichotomizes “Elite cost cutters” and “other companies.” “Elite cost cutters” are those companies that have sustained cost savings for at least three years.

So how do the Elite cost cutters save more? According to the whitepaper, sustainable cost reduction comes from a focus on Cost of Goods Sold (CoGS) instead of Selling, General, and Administrative Expenses (SG&A).

That’s a nice correlation but, at only two pages in length, the whitepaper doesn’t dive deep enough into this topic. Do CoGS suppliers have more of a propensity to hold their pricing for a longer time period than SG&A suppliers? Why would some of the companies choose not to focus on CoGS? Did industry make a difference in the results?

Unfortunately, these are all questions that go unanswered in the whitepaper. Despite that, if you want to download your own copy of the whitepaper, you can do so from the Toolbox for Finance Web site (registration required).

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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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."

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