Cost Cutting vs Cost Savings

We are all faced with the challenge of meeting the pricing pressures of our clients in this economy. Contracts? Is there such a thing when it comes to pricing? In this economy it is all about showing me the money and giving me the absolute best value. There are those companies that view reductions on the rates that exist as a win and others that can look deeper into the process and see that the impact of services can truly drive cost savings throughout the organization. I have been designing and presenting models for high tech service parts supply chains for over 17 years and I can tell you from experience that the savings comes from scalable solutions that impact internal operations and improve working capital. Let me be clear; there is a cost that comes with outsourcing services, but that cost has to be measured against the positive impact on all operational areas (Engineering productivity, customer satisfaction, inventory investment and planning) in order to see the true value of the solution and not just the price. There is much more to come on this topic in my next posting...

Thanks for reading....

John T Miller
SVP Global Business Development