Optimize costs in line with business objectives
Organizational needs can change quickly, as can supply market offerings. Every day new challenges can appear, and new solutions arise. The relationship between supply and demand is dynamic, meaning that there are often opportunities to reduce spend and implement cost optimization.
Optimizing costs means aligning what you pay to the outcomes that you need. This can be a combination of approaches ranging from rapid cost reduction to reconfiguring supplier contracts and relationships around revised goals. Savings are an inevitable outcome, but an optimization program should also leave a business leaner, fitter, and more focused rather than just a lower cost base through the following techniques:
- Fast idea generation and activity pipeline creation.
- Bringing external ideas and benchmarks to sense-check current practice.
- Agile approach to running the program and making investment decisions.
- Fast supplier engagement and risk-assessed costing.
Delivering positive change – Proxima’s cost optimization approach
Proxima will deploy a team of cost optimization experts, working closely with business leaders and stakeholders to set up and govern the program. In addition, there will be experts assigned to specific categories or process domains to get under the skin of business needs and recommend optimal solutions. We use our combined knowledge, tools, and skills to drive to act fast and deliver with confidence.
- Dynamic governance – we create a regular drumbeat to generate momentum and encourage quick decisions and implementation.
- Accelerated sourcing – we quickly connect to the right suppliers and put in place market-relevant terms, balancing process, risk, and speed.
- Mid-term plan – we create a rolling mid-term plan supporting the organization to optimize the internal vs. external and fixed vs. variable costs.