Are your costs important?

Well, let’s face it, they are quite important. Actually, they are very important.

Are costs though, the only priority?

Reading through an article in Supply Management recently reminded us just how critical other factors are in bringing about improvement:

1. Quality – understanding what’s important to the business – KPI’s
2. Service/Time – in the longer term
3. External Factors – the economy, suppliers etc.
4. Collaboration – internal and external
5. Legacy – what’s left behind post initiative

Mohamed Ali Habib (Head of Category Management, Procurement and Logistics at Emirates Steel) was recently quoted as saying:

“The risks attached to getting supplies on time can be far greater than cost. Time and quality are like the forgotten children, while cost is the favourite child. To get a focus on all three you need to work collaboratively.”

Expense Reduction Analysts, experts fully understand the need to consider all relevant factors when working with clients in order to bring about sustainable improvement.

Finding a ‘cheaper one’ is not difficult.

However understanding the wider business; it’s needs, wants, challenges and opportunities is. Value is more likely to be delivered over the longer term when those factors guide and inform projects or strategies designed to deliver cost benefit. In this way cost becomes perhaps the (desired) by-product of a wider consultative and sustainable approach.

Contact us for more information on how we can help you.