Cost optimization

Modern procurement takes more than just good negotiating skills. It requires deep understanding of production and service processes, organizational structure, and sales and technical know‑how.

Cost optimization projects are mainly designed to reduce costs and expenditure in particular procurement categories – from analyzing potentials to generating real savings that are visible on the P&L. However, the process itself is not only about costs optimization, but also optimization of company operations and procurement measures. This is how the lowest possible costs can be incurred at the same or higher levels of service or production.

 

Company cost optimization

At OptiBuy, we use the optiCAT method, which is based on the What-Where-How principle. This divides procurement methods into three clear-cut areas that need action, allowing us to develop a strategy for every procurement category.

Production cost reductions are made by lowering the costs of materials and media, which leads to lower end-product costs. However, indirect procurement categories – most crucially in, for example, the financial or services sector – also have the potential to improve the bottom line of the entire company, allowing it to earmark the savings for investments, team incentives or other goals.

 

Procurement optimization

Besides reducing costs at your company, other significant results of working on an optimization project with us include: improvement of the internal processes at your company; revision and renegotiation of contract terms and conditions; improvement of your supplier database structure, and competitive advantages in procurement that bring added value to your company.

OptiCAT method

OptiCat is a proprietary methodology for developing the best strategy for each procurement category. Analyzing the areas of the highest potential for generating real savings, OptiCat begins by addressing the three key questions that determine the status quo: What does the company procure? Where does it procure it from? How does it procure it?

What?

  • Simplification/Redesign-To-Cost
  • Variability reduction
  • Demand management
  • Buy or produce

Where?

  • Sourcing
  • Association
  • Reallocation
  • Negotiation

How?

  • Organization & processes
  • Supply chain
  • Supplier relations
  • Contract optimization

Contact our expert

Marlena Kryściak-Sitkowska

Partner

Linkedin