AOIMA’s cost reduction and category management services generate significant, hard and soft, cost savings and provide greater spend visibility and control.
In a perfect world, every dollar of expenditure adds value. But many factors exist to drive costs up: aggressive suppliers (just doing their job); under-resourced and/or inadequately informed purchasers; hastily executed contracts; high transaction volumes (resulting in a lack of visibility and control); and an absence of company-wide coordination and compliance.
AOIMA brings that perfect world, where every dollar of spend is “managed spend”, closer.
- AOIMA’s intelligent cost reduction service, optimises and significantly reduces indirect spend.
- AOIMA’s category and spend managements services ensure that spend is controlled and savings are sustained, and wherever possible improved, over time.
Cost Reduction Service
Our Intelligent Cost Reduction service takes a holistic approach to reducing indirect costs and overhead expenses. Depending on category reductions range between 10% and 50%. Comprehensive engagements typically yield savings of around 2% of annual revenue or greater.
Working with your executive and management, we begin to understand your company, its strategic direction and objectives, cost reduction goals, priorities, and challenges. We develop a communication plan for AOIMA’s engagement, conduct an assessment of potential savings opportunities and confirm the cost reduction initiatives that are worth pursuing. We ensure that our focus and effort is aligned with your corporate objectives, priorities and cost reduction goals.
We plan our activities in detail. We divide AOIMA’s engagement into logical projects and assemble the appropriate teams for each project. Before we begin to develop solutions, we produce baseline reports detailing the current situation for each category. These provide the benchmarks against which savings, and AOIMA’s performance, is measured.
Our consultants’ and subject matter experts’ extensive knowledge of supplier industries, coupled with their access to current pricing and other market-specific intelligence, puts them in the strongest position to develop solutions and, where necessary, negotiate on your behalf. They’ll work with your existing suppliers and/or their competitors to develop various options for evaluation and your consideration. We help implement the preferred option and monitor the performance of suppliers and your organization to ensure compliance and ensure projected savings are realized.
At AOIMA, we do not merely present a report making recommendations and leave it with you for implementation; we do not stop at facilitating the implementation of agreed solutions. We give your organization the tools and information it needs to sustain the implemented solutions and its benefits in the years following implementation. We also monitor suppliers to ensure they fully comply with supply agreements, that cost reductions are maintained and that you remain satisfied with the quality and service provided.
Category Management Service
Our Category Management service enables clients to outsource the management of indirect categories and spend to AOIMA.
Outsourcing these functions to AOIMA can be more effective than using in-house resources; it maintains prior gains and delivers additional savings than would otherwise not be possible; provides improved spend visibility and control and releases man hours that can be better used elsewhere.
If you’re ready to take control of indirect costs, eliminate wasteful expenditure and ensure it does not return, then call us.