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.
