Implementing a cost-reduction programme
3 April 2012
Q: I have been charged with the design and execution of a cost-reduction programme across a number of spend areas about which I know little or nothing. Results are required speedily, but there is no budget for external support. How should I proceed?
A: Mike Buchanan, managing director of consultancy LPS, writes: I would recommend a programme with four elements:
• a rigorous purchasing strategy development process;
• the formation of cross-functional teams, including managers familiar with the spend areas (possibly functional heads), led by yourself;
• execution of a methodology that...