Go Beyond Price In Generating Value for Your Organization

Price and quality are generally the two primary areas of focus when it comes to sourcing goods and services. AES Consulting helps you expand that value proposition for your company by using the additional levers of consumption and specification management (CSM).

I remember like it was yesterday, when I challenged my procurement team at Bristol-Myers Squibb to look for different ways to drive value for the Company. As we were talking through the impact that managing demand and right sizing specifications could have, I heard a lot of concern about procurement suggesting to their internal customers that they adjust how they consumed goods and services or even change the specifications of what they were using. But with intense profit pressures on the business, and with the right approach, our internal customers were very interested in learning how they could use CSM to improve their bottom line. And the savings we achieved together were incredible. In fact, we have found that many businesses like yours can derive significant cost savings by developing the right specifications and monitoring the usage of products or services.

We have looked at a variety of areas such as travel, meetings services, salesmen’s fleet, computer hardware and software, promotional materials and office supplies and found significant savings opportunities. Part of this has to do with creating more transparency around the spend, often realizing that money was being spent in an inefficient or inappropriate way. Carefully reviewing and right sizing specifications also created big opportunities. Another aspect of CSM has to do with establishing governance and reporting that results in better compliance with established policies and desired practices. And the great thing about savings from CSM efforts—they go entirely and directly to the bottom line, often with only minor changes in the business.

Making Your Business More Competitive

Using the principles of CSM can unlock hidden savings for your business. Those savings can be either taken to the bottom line or reinvested in the business to drive growth.

But, you can’t do any of that until you have your business’s CSM processes optimized for success. If you would like to find more dollars for growing your business in an economy where new dollars are hard to find, contact AES consulting at 609-306-8176 or use our online contact form.