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AOP Podcast

5 Ways to Reduce Spend by Managing Demand

By July 15, 2016June 1st, 2020No Comments

In today’s Art of Procurement, I share how the concept of demand management came to the front of my mind while out shopping for birthday presents for my son last weekend.

I then discuss five different ways in which procurement can help our organizations reduce their overall expenditure by managing demand rather than reducing supplier profit margins.

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“Are the metrics that you have required of your supplier too aggressive. Do they represent a nice to have? Or a perfect world situation?  If so, this increases the burden on your supplier, their cost to serve, and ultimately their price back to you.”

In this episode, you will learn:

  • Details behind my 5 ways to reduce spend through demand management:
    • Are products or services being over-engineered by business users?
    • Could you use substitute products or services?
    • Are your supplier metrics too aggressive?
    • Are you at risk of making duplicate purchases?
    • Can you reduce demand through policy and approval processes changes?

Links and Resources:

Thanks for Listening!

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