Supply Chain Cost Management: The Aim & Drive Process for Achieving Extraordinary Results

Supply Chain Cost Management: The Aim & Drive Process for Achieving Extraordinary Results

Supply Chain Cost Management: The Aim & Drive Process for Achieving Extraordinary Results

Supply Chain Cost Management: The Aim & Drive Process for Achieving Extraordinary Results

Synopsis

For most supply chains, cost reduction is imperative to long-term survival. Yet identifying the costs that can be eliminated - and then doing so effectively - can prove impossible without the right method. This book introduces the same process the author has used to save companies like IBM, Kodak, and DuPont billions of dollars, simply by harnessing the knowledge of suppliers. Using real-life case studies and examples,the book takes readers step-by-step through the process, showing them how to move beyond negotiation and:


• identify critical costs in the supply chain

• measure secondary and tertiary costs

• develop strategic options

• reduce, change, or eliminate activities that produce costs

• implement an action plan

• verify the plan with cost monitors

• continually improve and modify the process


The book gives readers everything they need to implement this powerful system, and bring genuine and permanent savings to their company.

Excerpt

During my time at IBM and Motorola (1995–2005), there was one goal that drove us constantly: a substantial reduction in costs. The low-hanging fruit had been gathered, and we were still far from our targets. We needed something that would take us to the next level where our category teams could generate breakthrough ideas that would deliver a sustainable competitive advantage for the company. The answer was AIM & DRIVE. We successfully deployed it at both companies, and were able to take hundreds of millions of dollars out of supply chain costs. That alone would be reason enough for me to take the time to write this Foreword. But the magic of the AIM & DRIVE process is that while we were reducing costs, we were also improving key supplier and internal customer relationships.

I remember one particular instance where we were looking at ways to reduce the cost of our Marketing brochures and literature. We engaged our key supplier and our internal customers in an AIM & DRIVE session. The initial skepticism quickly faded as they grew to understand the AIM & DRIVE approach to taking cost out without ugly battles and heated debates. Together, we were able to dramatically streamline the process and save tens of millions of dollars. Not only was the supplier thrilled with the more efficient process, our internal customers were delighted that these savings were from genuine process improvements that did not compromise the effectiveness of the creative process.

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