PROCUREMENT SERVICES
Cost Reduction
Effective sourcing is a low risk opportunity to increase profitability. Even modest savings lead to a significant profit improvement.
For example, a company with a 10% profit margin who spends 60% of sales on purchasing will achieve a 30% gain in profits by reducing their total purchases by only 5%.
Typically, savings of between 5% and 25% (and often more) are delivered for every £1 brought under our management.
Optimum's key to success is the long term sustainablility of cost reduction methods. Some key focus areas include:
- Supply Chain Optimisation
- Improved Asset Utlisation
- Reduced Sourcing Cycle Time
- Increased Supplier Led Innovation
- Improved Working Capital & Cash Flow
- Process Improvement
- Compliance to Contract
