Sustainable expense management programs should be managed to align outcomes with company objectives. Doing so amplifies their impact, strengthens stakeholder and supplier relationships, and provides real savings that can be reinvested as necessary.
In this 5-part special series, Art of Procurement Host Philip Ideson will take you through the keys to running a successful expense management program, pitfalls to look out for, and tactics to cover incumbent supplier management, strategic sourcing, and demand and category management.
In part 3, we focus the tactics you can use:
- With incumbent suppliers
- Renegotiate / restructure existing contracts
- Reduce the cost to serve (e.g. less aggressive metrics)
- Value Analysis / Value Engineering (VA/VE)
- Reduce scope of work
- Negotiate with tier 2 suppliers
- Inventory reduction / reassignment
- During strategic sourcing
- Market test (e.g. eAuction) for commodity items
- Go to market (e.g. RFP) for contracts within 12 months of expiration.
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Links & Resources
If you are considering starting (or revamping) an expense management program of your own, you’ll want to check out our free resources: The Ultimate Guide To Expense Management: Achieving Cost Savings That Stick and 24 Expense Reduction Tactics that Generate Cash for Your Business.