Performance Management
We resolve operating system gaps
Cost Reduction in Indirect Production Materials
Project Challenge
Reduce cost of indirect production materials by 10%.
Strategy Applied
- Created a Multidisciplinary Working Group with objectives: 10% reduction in spend.
- Re-evaluated all contracts with service providers, utilities, suppliers, seeking synergies and improvement opportunities as well as optimizing the supply chain.
- Offered Continuous Improvement Programs to Suppliers.
- Sought synergies with other companies for joint purchasing in larger volumes.
Implemented Results
- Re-evaluation of contracts and new purchasing methods brought a fiscal gain of 11% on purchased indirect materials.