Cost leadership is more than driving your cost below that of the competition, it is also about delivering a cost footprint that is appropriate to an organisation’s financial performance, value proposition and competitive landscape.
These outcomes can manifest themselves in a number of ways, for example through the reduction of product costs in response to market pressures created by the arrival of low cost market entrants; or the development of cost strategies to support products in the different stages of their lifecycle. Alternatively, the outcome sought might be an improvement in working capital and internal cost brought about through supply base consolidation or enhanced efficiency in terms of returns on capital investment.
We believe that your ability to lead your competitors relies on a deep understanding of your supply chain process and its ability to best serve your customers in an effective, rigorous cost management process. To us, these are as intrinsically linked. Unless your costs are understood, aligned to organisational objectives and strategically managed, your business will struggle to reach its full potential.
Our approach to cost management and ultimately leadership is to delve deeply into the ways you spend money throughout the supply chain process, so that we understand everything, at every level. We use tools, processes and benchmarks and our specialists’ experience, drawn from an expansive suite of products and consulting services to first analyse and understand, before making recommendations for change and improvement. But, unlike some cost management consultants, we don’t just leave it there. Supported by this enhanced understanding, we will work with you, at a practical level, to create the right environment for your commercial success and help you to transform your business.
Because every organisation is different, our approach to cost leadership reflects this. Everything is tailored to suit your business and needs, drawing on our expertise and experience in areas such as cost modelling, strategic sourcing and supply chain analytics. We can build a specific cost reduction programme to focus on both long and immediate term solutions, identifying quick wins for cost reduction and risk reduction as well as implementing long term strategies focused on delivering a fundamental shift in your cost base. For us, it’s about getting the basics right as well as your team aligned, so that you have a strong, strategically-grounded basis on which to build commercial success.
"For a global manufacturing business like Britax, having an agile and competitive supply chain is critical to our long-term growth in profitability. By working with Vendigital, we’ve had the highest-quality resource focused on achieving this across our procurement spend."