a cooperative process you and your suppliers can use to identify and reduce costs.
The “Aim & Drive” Process has eight steps that will empower you and your suppliers to work together ina process of continuous cost reduction while improving quality and delighting your end customers.
3. 4. 5. 6. 7. 8.
“Agreeing” “Identifying” “Measuring” “Defining” “Reducing”“Implementing” “Verifying” “Eternally”
Review the relevant business, marketing and procurements plans for your company. Schedule sessions to develop your strategic approach. Select theinitial members. Its members will identify the areas and costs that they believe your project can improve. Designate the rest of the working team (representatives of management, stakeholders and themost important suppliers). The larger team will desing goals for the project.
Identifiying where you are incurring costs and which costs you can lower by working cooperatively with your suppliers
Each formula ends with a revenue driver. Each supply chain has only one revenue driver. Addition operates on cost elements. Cost elements are physical events that are expressed inmonetary terms over a specified period. Cost driver are only expressed numerically in variables. Qualitative, nonquantifiable elements are expressed as functions or strategic options.
Take thecost elements you have identified and catalogue them according to formulas that assign weights to each cost elements according to its values.
These options are dangerous; put them on hold,redesign them or abandon them. Low Return
These options are the usual standards. You might make them more profitable or less costly by automating them or reducing your supplier’s cost.
Thelikelihood is that only a few, highly skilled providers are available to carry out these options, so your negotiating scope may be limited. High Return These options tend to be market-driven. Focus on...