What Happened to Strategic Profit Building?

It is far too easy for companies to start slashing costs in order to improve profits. Unfortunately it's often at the expense of the business. This article discusses the pros and cons of cost cutting, as well as the benefits of using strategic sourcing to generate revenue. Simply put, it is a more sustainable strategy for growth. Here are 5 actions you can take to help your business focus on profits AND long term viability.

5 Actions That Put Your Money To Work:

1. Establish a vision and an infrastructure for your procurement efforts.  It’s more than training, projects and negotiations.  It’s about the basics:  driving price down, ensuring on time delivery and quality when the supply chain needs it.

2. Dive deeper:  Drive cost out of both the supplier and the buyer’s supply chains.

3. Quantify inefficient lead times or delivery times and the negative impact it has on your business.

4. Drive back to basics in developing and managing supplier alliances for world class growth of both the supplier and the buyer.

5. In the end, procurement needs to touch on all of these fundamentals that have somehow been lost in the economic upheaval.

Click here to read the full article by Julie Brignac, President & CEO, Quantum Six Solutions, Inc.