Tag: cost reduction

Avoidance strategies for 7 common pitfalls in Strategic Procurement implementation

Procurement Pitfalls

Avoiding 7 Strategic Procurement Pitfalls

Strategic Procurement offers major supply chain savings, but only when done right. We’ve compiled the 7 most common pitfalls we see in Strategic Procurement deployments, along with the strategies we employ to help our client partners avoid them….

Your supplier just raised their prices. What now? How do you know if the increase is fair and reasonable?

Price Hikes

Mitigating Supplier Price Increases

Ready to move from tactical firefighting to strategic advantage? Price hikes are hitting businesses everywhere, but how we respond makes all the difference. We help our client partners develop and install Strategic Sourcing programs that leverage total spend, reduce costs, and protect supply for the long term….

Control Amidst Chaos In turbulent times, focus on what you can control: your labor efficiency, your facility footprint, your operational excellence, and your supply chain

Tariff Compensation

Focus On What You Can Control

Market disruption and policy changes can feel paralyzing, but we urge our client partners to focus on what is within their control to maximize operational plan attainment, resilience, and sustainability. Kormac helps clients swiftly adapt to changing conditions. We’re pleased to share this quick guide to cost management and tariff compensation strategies….

Achieving Reshoring Cost Parity with Speed and Precision Around the world, conditions are accelerating shifts toward localized, more controllable manufacturing and supply chains. Kormac enjoys meeting our client partners' facility needs, whether they be greenfield or brownfield, domestic or international. We address the technical, tactical, and cultural aspects of facility transition to ensure strategic alignment, schedule attainment, fiscal adherence, enhanced resilience, and performance sustainability. See PDF for more.

Cost Parity

Achieving Reshoring Cost Parity

Reshoring is gaining momentum, but achieving cost parity remains a challenge. Our concise guide outlines key strategies for minimizing upfront investment and achieving production cost targets in domestic operations….

Strategic Sourcing Category Management Savings Kormac is helping an industrial components provider to reduce costs by developing and institutionalizing a rigorous Strategic Sourcing process. Initial results in Metal Fabrication: 13% to 16% cost reduction across 59 parts We're currently addressing major spend categories addressing 40% of our client's annual COGS. In 2025, we'll tackle the "spend tail" to uncover additional savings on lower-use items.

Strategic Sourcing

Category Management

We recently partnered with a leading industrial components provider to reduce costs by developing and institutionalizing a rigorous Strategic Sourcing process. In the first spend category, we immediately revealed a 13% to 16% cost reduction opportunity. We’ll soon address major spend categories representing 40% of our client’s annual COGS….

"Working with suppliers is just as important as listening to customers." - Barry Nalebuff, Yale School of Management

Supplier Development

Supplier Development Program (SDP)

Many of our client partners are turning to their supply base for collaborative performance improvements. Formalizing a Supplier Development Program can transform transactional relationships into strategic partnerships delivering outsized mutual benefit….

Private Equity: Challenging Debt Environment. If uncertainty has shifted your private equity value creation strategy from exit and acquisition to organic growth and productivity, Kormac is here to help. Grant Thornton's survey on the Top industries for M&A activity in the next 6 months shows that 34% goes to Technology, media, entertainment and communications. 32% goes to Banking. 32% goes to Healthcare. 31% goes to Services, and 25% goes to Real Estate/construction. It is noted that respondents were able to select up to three industries.

Private Equity Exits

Challenging Debt Environment

If exit uncertainty has shifted your private equity value creation strategy from exit and acquisition to organic growth and productivity, we can help. …

Surgical Strike Results Our Surgical Strike Methodology™ empowers us to meet client needs with exceptional speed and precision. - 2x to 3x rapid revenue growth - 10% to 90% cost reduction - 2% to 15% margin improvement - 15% to 110% on-time delivery improvement - 35% to 85% OEE improvement - 25% to 60% space & labor rationalization

Surgical Strike Results

Sur·gi·cal [/ˈsərjək(ə)l/] adj. – characterized by extreme precision or incisiveness. Kormac’s laser-focused Surgical Strikes target specific client needs and deliver accelerated results. Clients are consistently impressed by the speed and scale of results achieved by our small teams of experts that do more with less. For detailed case studies describing...