There will always be either one to achieve Value/ profitability or surplus ; increasing revenues or minimizing costs incurred in providing the products or services
In the event that “low cost or volume variability” is competitive strategic fit company applies whereby upselling becomes non feasible due to severe market competition then supply chain strategic initiation in all areas shall be done.
This is Business case Exercised :
Sourcing is one area of concerned
- Supplier scoring and assessment is the areas rejuvenated.
- And Design of procurement were reviewed.
Airlines are the main partner of courier company that provide their spaces for sale to the trade partners and industries:
They specify how their belly spaces be offered, priced and promoted. Of course we will have never been told on how they can impact to our costs saving.
- Selling in loose quantity
- Selling intact ( BUP / GOH )
- BSA ( Block Space Agreement )
I proposed to shape up the conventional procurement method into next level (point2) and challenged airlines on approval. (Auctions and Negotiation are part of the success criteria of sourcing)
And wala .. Carriers approved ..
We suddenly could squeeze down the procurement costing to nearly 50% initially. And .. oh noo…Airline just realized and spotted that we made too much savings on the agreed procurement. The deals continued on slightly adjustments on discounts models within intact procurement system 🙂 :).
One success will and always attract another success.
Knowing we could have saved costs to lowest level… another supplier came with another lower deals😅😅😅.
In short …Be LEAN way of thinker and be profitable alwayssss
PA Consultant .. help Organizations to GROW
Have a Blessed Friday , Stay Safe and Healthy linkers/bp
