Cost Reduction.
Direct Material
Optimisation (DMO).
A comprehensive cost reduction program for your direct material spend.
As experienced purchasing professionals and analytical experts, our consultants are able to analyse data and conduct supplier negotiations based on factual data. Developing and introducing new items takes some time and effort, just like switching to a new supplier. However, these efforts pay off and provide realistic financial benefits.
All-in-one
solution.
Our Direct Material Optimisation (DMO) is an all-in-one solution for achieving sustainable and reliable cost savings. Based on PVA, we develop recommendations for commodities and suppliers. Our consultants will support the purchasing department to achieve its goals in the implementation — from negotiating with current suppliers to moving to new suppliers. Our DMO method is divided into two phases as the following:
Fase 1:
Negotiations
The first phase mainly focuses on conducting negotiations with the current suppliers, possibly through a Supplier Convention. The aim is to strengthen the relationship with your current suppliers, to have substantial discussions and to achieve significant improvements.
Supplier Convention is a proven successful method for achieving maximum results in a short time. Through thorough, fact-based preparation, we can always take extra necessary steps to optimise prices as well as commercial conditions with existing suppliers.
Fase 2:
Commodity Management,
Technical Sourcing, Cost Engineering
The following phases focus on a total cost improvement of your products, which usually takes more time before the effect is visible. Through Commodity Management, we assemble teams for each commodity group, perform benchmarks, analyse costs, launch supplier workshops and implement RFI/RFP/RFQ to develop new suppliers.
If you are more interested in benchmarking and resourcing, our Technical Sourcing is a reliable method with its extensive supplier database. We can also take a closer look at some products via Cost Engineering for a detailed component and 'should-cost' analysis.
Benefits.
Swift results
Achieve maximum result in a short timeframe through Supplier Convention & direct negotiations
Tangible outcomes
Realise both financial gains and qualitative enhancements
Long-term impact
Achieve lasting improvements that can benefit your company for more than 2 years
Holistic approach
Comprehensive project management covering technology, commerce, logistics and internal processes.
More information?
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