They're Never Satisfied: Taking Cost Reduction to the Next Level

Author(s):

Marilyn Gettinger, C.P.M., M.B.A.
Marilyn Gettinger, C.P.M., M.B.A., President, New Directions Consulting Group, 908-709-0656, mgettinger@aol.com

88th Annual International Conference Proceedings - 2003 - Nashville, TN

Abstract

Business forecasters predict that senior management will push supply professionals to cut costs approximately 3% per year for many years into the future. In some cases, the goal is as much as 12%. At the same time, CEO’s also expect an increase in quality and an increase in delivery time. The purchasing department has been meeting the challenge. Buyers rate the pressure level at an 8 (out of 10) to uncover new cost reductions and that pressure has been on for the last 5-10 years.