Book description
For most supply chains, cost reduction is imperative to long-term survival. Yet identifying the costs that can be eliminated – and then doing so effectively – can prove impossible without the right method. This book introduces the same process the author has used to save companies like IBM, Kodak, and DuPont billions of dollars, simply by harnessing the knowledge of suppliers. Using real-life case studies and examples, the book takes readers step-by-step through the process, showing them how to move beyond negotiation and:
* identify critical costs in the supply chain * measure secondary and tertiary costs * develop strategic options * reduce, change, or eliminate activities that produce costs * implement an action plan * verify the plan with cost monitors * continually improve and modify the process
The book gives readers everything they need to implement this powerful system, and bring genuine and permanent savings to their company
Table of contents
- Copyright
- Praise for Supply Chain Cost Management
- Foreword
- Preface
- Acknowledgments
- Introduction
- The AIM & DRIVE Process of Cost Management
-
Agreeing on the Need to Manage Costs
- What Is a Strategy?
- Do We Really Need Strategies?
- The Best Have to Get Better
- Demonstrating Leadership in the Supply Chain
- Facilitating the Right Decision-Making Process
- Building Credibility and Respect
- The Goal of Cost Management Strategies
- Preparing for a Cost Management Strategy-Building Session
- Determining Team Goals
- The Master Worksheet
- Identifying Critical Costs in the Supply Chain
- Measuring Secondary and Tertiary Costs
- Defining the Key Cost Drivers and Developing Strategic Options
- Reducing, Eliminating, or Changing Activities That Cause Costs
- Implementing an Action Plan
-
Verifying the Plan with Cost Monitors
- Appoint a Project Coordinator
- Hold Weekly or Biweekly Meetings or Conference Calls
- Attend All Meetings and Conference Calls—on Time, Every Time
- Avoid Getting Dragged into Negotiations
- Monitoring Performance
- Documenting Savings
- Documenting Qualitative Benefits
- Review the Goals Specification Worksheet
- Modify Action Plans
- Grading the Team
- Sharing the Learning Process
- Eternally Improving and Leveraging the Process
- Index
Product information
- Title: Supply Chain Cost Management: The AIM & DRIVE® Process for Achieving Extraordinary Results
- Author(s):
- Release date: October 2007
- Publisher(s): AMACOM
- ISBN: 9780814474754
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