Vendigital’s Cost Reduction Programmes achieve an average 5-10% reductions on total business spend in 6-12 months. Savings across all tendered categories are averaging 26% as part of these programmes. Both direct material and indirect material programmes are highly effective for improving profitability. A programme comprises three distinct elements incorporating the analysis, the cost reduction activity itself and equipping your business with advanced purchasing techniques during a fast and vigorous process.
Within a programme, our team of seasoned professionals utilise many of the techniques developed by Vendigital including savings optimisation analysis, global supplier headhunting, online tendering, e-auctions, value auctions and the project management of results implementation.
Analysis
Each programme will typically start with some robust analysis. During this analysis phase, we will
utilise our savings
optimisation toolsets to identify projects that
will yield the greatest returns. These toolsets also aids in the creation
of an optimised implementation plan and estimates the expected savings
over the duration of the programme.
Cost Reduction
The plan developed during the analysis will require multiple tenders to
be conducted. To ensure the best outcomes, we will utilise best practice
tools and techniques including global supplier headhunting, an eRFx platform,
online auctions, value auctions, and if required, the project management
of results implementation. During such tenders, valuable market information
is incorporated into the contract and even product designs.
Purchasing Processes
It is essential to protect the gains created through the cost reduction
programme. To do this, Vendigital can provide you with the tools and
techniques that it uses. If this is a requirement, during the cost reduction
element of the programme, we will train selected people within your company
in their use. This ensures your own purchasing capabilities are up rated
to ensure the gains made are secured and built upon.
"The fear was that a good supplier was going to be replaced with a cheap, unknown supplier. Vendigital's approach ensured that these concerns were unfounded. "
Bob Morrow
Purchasing Manager
Bonar Floors
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