I hope that you have enjoyed the article “Cost Reduction Ideas (Beyond Sourcing) ” with its four cost reduction ideas and it’s accompanying podcast that includes an additional three cost reduction ideas. All of these cost reduction ideas were geared towards situations where switching suppliers is not practical or a suboptimal alternative.

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Because of the potentially knee-jerk “let’s switch suppliers” approach to cost reduction, I wanted to highlight the alternatives to sourcing. And like so much of what I teach, it’s not so much knowing the tactics, it’s moreso applying the right tactic in the right situation.

To help you understand which situation to apply which tactic, I’ve prepared the following 2×2 matrix. The tactics covered in “Cost Reduction Ideas (Beyond Sourcing)” fall into the “Collaborate” quadrant.

Cost reduction ideas illustrated in this table

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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