Comprehensive Cost Cutting Strategy Development

Overhead Expense Reduction Services

Finding substantial cost savings means combining several key strategies into a comprehensive plan

Effective cost reduction means moving beyond supplier negotiations. Corcentric’s end-to-end expertise will help you explore every area of improvement to drive real savings across your organization.

Searching for cost savings can be like exploring an iceberg – limiting the scope to what is above the surface means missing out on the hidden opportunities below. Supplier negotiation is a clear cost reduction strategy, but failing to look at them as parts of a comprehensive solution could lead to lower quality levels, process inefficiencies, and wasted effort. Organizations need a comprehensive approach to cost savings. Corcentric can help.

To be successful, cost reduction measures must incorporate four elements

  • Address any areas of improvement within Procurement’s people and processes.
  • Examine the tools and technologies in place to ensure Procurement is fully leveraging all resources.
  • Build a cost savings roadmap through proper spend analysis and opportunity assessment.
  • Move beyond unit cost reductions and include strategic sourcing activities.


Contact us to learn how we’ll develop this holistic overhead expense reduction strategy for your organization.

Enhance the Procurement Team

Corcentric starts with a full review of your team’s processes and capabilities. This helps remove any barriers to success or process bottlenecks that waste Procurement’s time and limit your ability to succeed.

  • Review policies, SOPs, roles and responsibilities, and documentation. Streamline where possible, and reinforce any weaknesses found.
  • Identify team member strengths and weaknesses, and develop a training program tailored their specific needs.

Evaluate Procurement Tools & Technologies

Technology exists to make our jobs easier, but poor implementations or ill-fitting solutions increase complexities and drive inefficiencies. Corcentric’s technology advisory team ensures your tools support your needs rather than complicate them.

  • Review implemented solutions for process improvement or increased automation. Identify best-in-class offerings where new solutions are needed.
  • Drive technology adoption and change management plans to encourage full use of these tools.

Conduct a Spend Analysis & Opportunity Assessment

Sourcing events can drive significant savings – if teams know where to start. A spend analysis is critical in developing a sourcing roadmap, but is a heavy added lift for teams already busy with day-to-day responsibilities. Corcentric eases this weight by managing the process.

  • Identify all sources of spend data and collect key information. Cleanse, consolidate, and classify suppliers into a Procurement-focused taxonomy focused on driving savings.
  • Take analyzed spend and develop an opportunity assessment. Generate cost savings strategies and levers and savings forecasts based on your organization’s unique spend profile.

Move from Tactical Buying to Strategic Sourcing

Procurement can’t rely on reactive market events and a three-bids-and-a-buy approach to drive significant savings. Corcentric helps teams elevate their approach and leave no cost savings stone unturned.

  • Identify critical cost savings levers and strategies for each unique spend category, from product standardization and scope rationalization to RFQ/RFP events and GPO program reviews.
  • Manage the tactical implementation of the established strategy, leaving your team free for strategic decision-making.


Negotiating lower unit costs is only one piece of the cost savings puzzle. Contact us today to make sure your cost reduction strategy identifies and takes advantage of all available opportunities.

Contact Source One

Share this

Advisory Services

Learn more about Corcentric’s comprehensive portfolio of services that help you manage your overhead costs.

Transformation

Strategic sourcing’s success relies on a strong procurement process and talented resources. Corcentric’s procurement transformation solution helps identify and address gaps and fully leverage your team’s strengths.

Procurement Advisory


Technology

Whether you’re in the market for a new procurement solution, or want to ensure your team is getting the full value of your current purchasing technology, we can help.

Technology Advisory


Spend Analysis & Opportunity Assessment

Kick off sourcing initiatives more quickly by leveraging Corcentric’s spend analysis platform and opportunity assessment services.

Spend Analytics


Procurement Help Desk

If you need plug-and-play subject matter expertise, our on-demand support service integrates seamlessly with your team’s resources to boost availability.

Help Desk Solution