13 ways sustainable sourcing and procurement drive ESG efforts
The strategic sourcing process is a cycle, so it cannot be done once and forgotten about. A cycle approach to […]
Procurement 101
Reading time:
5 minute read
Written by
Majdi Sleimen
There’s an abundant online sea of practical ideas for cutting costs in business:
But how do companies go about practically implementing these different techniques?
As an administrator, when your attention turns to reducing expenses in the office, there’s more involved than simply declaring an update to existing methodologies.
Especially in larger companies, the process used to revise and adjust the current standard operating procedures which are already in place can prove to be cumbersome and challenging.
In an audio interview focused on procurement cost reduction strategies, a framework is outlined for enhancing purchasing procedures to improve operational cost efficiency in business.
While the idea for this framework is focused on cutting costs through procurement optimization, the same practice can be used to initiate other elements of a cost reduction strategy.
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Policies control everything in a business - including the potential effectiveness of a newly devised cost control strategy.
There are two questions to ask when updating cost control policies:
By assessing current policies from a cost reduction standpoint, administrative stakeholders can evaluate and plan policy changes prior to making impactful operational adjustments.
Adjusting standard operating procedures can significantly reduce costs. By first planning policy updates, workflow transitions can occur more smoothly by causing less unanticipated disruption.
Because every business operates differently, innovative ideas for which operational procedures should be added or removed will need to be developed on a case-by-case basis.
Once policies and procedures for a cost reduction strategy have been established, they can be reinforced through the deployment of a spend management system.Spend management systems are designed to control costs by ensuring all financial activity is initiated and streamlined through a single, standardized point of entry.
During the evaluation process, consider learning more about Tradogram - a simple, flexible, and affordable spend management system that was designed to support cost reduction initiatives in mid to large-sized businesses.
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