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….
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….
For Unpredictable Demand Across Wide SKU Base
Flexible replenishment models—leveraging historical data, real-time analytics, and demand variability—enable companies to maintain service levels without tying up working capital in excess inventory. We help our client partners build tailored, data-driven replenishment processes that boost both efficiency and customer satisfaction….
Reducing Annualized Material Costs
Kormac recently partnered with a global distributor of engineered components to address inefficiencies across its supply chain. We jointly achieved 20% reduction in annualized material costs, 18% reduction in working capital inventory, and 50% improvement in customer fill rate….
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….
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….
Global Supply Chain
From China+1 to “friendshoring,” supplier diversification is hot. Tariff talk and geopolitical tensions are prompting plans for greater geographic supply diversification. We enjoy helping our client partners build secure, flexible, and adaptable supply chains suited for our increasingly complex global business environment….
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….
Rebalancing the margin tug-of-war
![Cost Management Rebalancing the margin tug-of-war Does your organization struggle to achieve financial goals in an increasingly volatile marketplace? [iconography of two teams playing tug of war, with the target margin in the middle. Text above the image reads "Kormac Rebalancing"] Cost Pressures: Labor, Materials, Logistics, Real estate, Technolgy Market Pressures: Pricing, service delivery, quality, lead time, social responsibility Kormac's Surgival Strike Methodology™ delivers the agility you need to meet your financial objectivers.](https://kormacgroup.com/wp-content/uploads/2022/10/cost-management.jpg)