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Procurement Consultants
SRx Consulting
Strategic Resource Xcellence
Strategic Cost Management
Strategic cost management is a foundational requirement for the procurement function, ensuring that your team optimizes spend, improves supplier relationships, and delivers competitive advantage to your company.
Effective cost management goes beyond simple cost-cutting; it requires a structured approach to understanding, analyzing, and controlling costs while aligning procurement strategies with overall business objectives.
What to Expect
- A Procurement team familiar with Strategic Cost Management concepts should have these capabilities:
• Should-Cost Model: Determines a reasonable cost for a product or service based on known inputs
• Price Discipline™ Model: Known price trends
• Total Cost of Ownership (TCO) Model: Total cost of material acquisition, use and disposition
• Supplier Communication and Negotiation skills that ensure maximum commercial benefit while strengthening supplier relationships
By implementing strategic cost management practices, procurement teams can enhance cost transparency, improve negotiation leverage, and drive sustainable cost savings while supporting business objectives.
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