3 Quotes Is Not Competition
Ask any sales guy and they’ll tell you the same thing. By the time a new solution reaches procurement, in 75 to 80% of cases there is already one vendor lined up to win it. The product owner has been in conversation for months, the discovery happened, the POC ran, the champion is briefed. We […]
Why We Challenge Cost in Manufacturing and Never in Software
Send an RFQ for an injection moulded part and you ask for a cost breakdown. Automotive, pharma, aerospace, renewables, everywhere, it’s simply how the category works, and no supplier has ever found the question rude. Send an RFQ for software and we ask for a discount. I’ve spent time on both sides of this, manufacturing […]
Performance Measurement and Continuous Improvement – Navigating Toward Operational Excellence
Part 3: From Implementation to Optimisation With strategic foundations established in Part 1 and implementation tactics deployed from Part 2, sustainable cost management success requires systematic measurement and continuous improvement. However, reaching this maturity level involves significant organisational complexities that many manufacturers underestimate. Organisations successfully navigating to this advanced stage typically sustain 6 – 8% […]
Procurement Implementation Tactics – Navigating the Depths of Cost Optimisation
Procurement Tactics: From Strategy to Execution Having charted your strategic course in Part 1, successful cost management now demands precision in execution. Like experienced navigators who understand that surface conditions reveal little about underwater currents, effective cost managers must probe beneath obvious expenses to uncover hidden cost drivers that can sink profitability. This deep-dive exploration […]
Strategic Procurement Cost Management for Manufacturing Excellence
From my experience leading cost optimisation initiatives across European manufacturing companies, I’ve witnessed the transformative power of cost engineering when applied strategically. In one particularly successful implementation, cost engineering enabled our procurement team to achieve 28% savings in a critical component negotiation by presenting suppliers with detailed should-cost breakdowns they couldn’t dispute. However, I’ve […]