Every organization is looking at ways to intelligently reduce costs –without creating an undesirable level of risk. One of the key focus areas in MRO cost reduction is always procurement and inventory cost reduction, where opportunities for optimization exist in virtually every company. It’s only a question of whether you can actually identify them, how well and quickly you uncover them and how fast you can implement the changes that can deliver tangible savings.
Our approach to MRO cost reduction is multifaceted, always assessing benefits against risk. The savings may come from different areas, such as reduced cost of sourcing, lower procurement overheads, efficient supplier rationalization, lower-cost alternate sourcing, increased spend visibility, improved vendor contract management or reduced inventory carrying costs.
Our consulting group does diagnostics for clients, to do a deep analysis of issues, to identify root cause issues. The strategy for cost reduction is developed as an outcome of the diagnostic exercise.
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