Tag Archives for " cost reduction tip "

How to Prepare Simple, Effective Cost Management Reports (part 1)

SUPPLY CHAIN MANAGEMENT CAN BE EASIER WITH GOOD REPORTING REGIME IN PLACE

By Doug Hudgeon The Cost Reduction Tip Effective management accounts are critical to a cost reduction initiative. Without it, your stakeholders can’t see that their pain is justified. It’s like the difference between running on a treadmill (without a watch or odometer) and running through the countryside. If you have a destination and can track […]

Teach Your Old Vendors New Tricks

By Doug Hudgeon The Cost Reduction Tip In the 1970s and 80′s, skateboarding went through a renaissance. Difficult tricks became commonplace and impossible tricks became possible. The invention of polyurethane wheels in 1972 and the US drought in 1976 (which led to the draining of concrete pools) kicked off these advances but it was not […]

How to Identify Cost Reduction Opportunities

By Doug Hudgeon The Cost Reduction Tip Certain problems when you first look at them seem intractable. But once you understand their natural fracture lines, breaking them up and solving them is actually quite easy. Most business process problems fall into this category and cost reduction problems are no exception. The natural fracture line for […]

Cost Reduction – Start by Looking for Game-Changing Opportunities

By Doug Hudgeon The Cost Reduction Tip When looking at cost reduction opportunities in an area, you should start by assuming that you can remove 100% of the cost. If that’s not possible, then look at ways to remove 90% of the cost. If you don’t start ambitiously, you’ll miss some real plum cost reduction […]

How to Build Your Own Cost Analysis Monte Carlo Simulation in Excel or Google Spreadsheets

By Doug Hudgeon The Cost Reduction Tip After posting yesterday’s tip, I’ve received a few requests to explain how the Cost Analysis Monte Carlo spreadsheet works. I hope you find this post useful. Note: For those who are fire walled from Google Docs, please click this link for an Excel version of the Cost Analysis […]

Doug Hudgeon – The Cost Reduction Tip: Fix Core Problems

By Doug Hudgeon The Cost Reduction Tip Some problems just need to be fixed, regardless of cost. Last year, near our apartment in South Delhi, maintenance workers spent more than two months resurfacing our road. Every fortnight thereafter (and possible continuing to this day), a sinkhole would appear in the road and a roadwork crew […]

Use Monte Carlo Simulations to Quickly Model Costs and Influence Stakeholders

By Doug Hudgeon The Cost Reduction Tip Taking your business down to its lowest possible operating cost typically involves changing (usually simplifying) processes. When preparing a business case for changing your current processes, it is usually easy to nail down system costs but people costs are almost always problematic. Even if you believe you can […]

Keep Your Passengers Informed

By Doug Hudgeon The Cost Reduction Tip Tom Bender from SpendCorp contributed today’s tip: It’s not enough to do good work, your stakeholders must see that you are doing good work: control, track and report. Doug Hudgeon who is lawyer and vendor management professional who has branched into finance and accounting shared services management.

Cost Management Tip – Simplify Requirements Before Embarking on a Change Program

A PROFITABLE DIALOGUE

By Doug Hudgeon The weekend cost management tip On the weekends, I’ll give a short cost management tip without web or book references. Today’s tip is prompted by an article in the Sydney Morning Herald describing the woes and hopes of Sydney’s public transport e-ticketing project. In 1999, the NSW government signed a contract to […]

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