Developed approach for collaborative cost reduction
Situation:
A former client and leading medical technology company turned to Kormac for assistance in improving supplier performance to achieve an aggressive cost reduction target.
Actions:
Researched and developed best-practice approach for Supplier Development and Collaborative Cost Reduction, including:
- Choosing suppliers for Kaizens based on spend, criticality, success potential, and willingness to participate
- Scheduling and conducting introductory meetings
- Agreeing to commercial terms, including how benefits will be measured and distributed
- Agreeing to specific areas of focus and KPI targets with the supplier (piece-part cost, OTIFQ, etc.)
- Scheduling and conducting Kaizens to identify cost, delivery, and waste optimization opportunities
- Deciding how Program Implementation will proceed
- Determining resourcing and timelines
- Tracking and measuring results
