Six strategies you can use to save are:
- Reverse Auctions on Commodity Categories in Competitive Markets
- Sealed Bids on Strategic Purchases of Custom Goods or Services
- Decision Optimization on High Value Goods
- Process Re-engineering with Strategic Partners
- Lane Optimization
- Distribution Center Optimization
Reverse Auctions on Commodity Categories in Competitive Markets
Sealed Bids on Strategic Purchases of Custom Goods or Services
If the category is strategic, you should not use a reverse auction or open-bid methodology and have suppliers compete solely on price – after all, quality will be just as important.
Decision Optimization on High Value Goods
An introduction to decision optimization can be found in one of my first posts on this blog and in my optimization series (I, II, III, and IV) over on eSourcing Forum. Additional information can be found in my CombineNet series (I, II, III, and IV).
Process Re-engineering with Strategic Partners
Streamline processes increases productivity. This allows you to increase spend under management and the savings you can generate.
Make sure you are using the right lanes at the right service levels from the right carriers. Otherwise, you could be considerably overspending on your transportation.
Distribution Center Optimization
See the fourth post in my CombineNet Series, BoB’s Unique Talents for a description of this process.