For most supply chains, cost reduction is imperative to long-term survival. Yet identifying the costs that can be eliminated-and then doing so effectively-can prove impossible without the right method. This book introduces the same process the author has used to save companies like IBM, Kodak, and DuPont billions of dollars, simply by harnessing the knowledge of suppliers. Using real-life case studies and examples, the book takes readers step-by-step through the process, showing them how to move beyond negotiation and:
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identify critical costs in the supply chain
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measure secondary and tertiary costs
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develop strategic options
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reduce, change, or eliminate activities that produce costs
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implement an action plan
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verify the plan with cost monitors
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continually improve and modify the process
The book gives readers everything they need to implement this powerful system, and bring genuine and permanent savings to their company.
Foreword by Theresa Metty
Preface by Dave Nelson
Acknowledgments
Chapter 1 : Introduction
Chapter 2 : The AIM & DRIVE Process of Cost Management
Chapter 3 : Agreeing on the Need to Manage Costs
Chapter 4 : Identifying Critical Costs in the Supply Chain
Chapter 5 : Measuring Secondary and Tertiary Costs
Chapter 6 : Defining the Key Cost Drivers and Developing Strategic Options
Chapter 7 : Reducing, Eliminating, or Changing Activities That Cause Costs
Chapter 8 : Implementing an Action Plan
Chapter 9 : Verifying the Plan with Cost Monitors
Chapter 10 : Eternally Improving and Leveraging the Process
Index
