Identify Cost Reduction Opportunities and Manage Market Volatility...
Squeezing Out Costs in a Soft Demand Market
Buying organizations always find themselves challenged in slower markets to identify cost reduction opportunities and manage market volatility.
In a market with slowing demand, a number of strategies and tactics can help a company better manage margins. This research report offers 5 strategies to help achieve cost savings in slower markets. Moreover, readers will walk away with a stronger understanding of how to map out their metal spend during slow economic times.
Case Study Involving Metal Market Volatility
For a Tier 2 automotive company, MetalMiner generated a 7.3% savings on an annual stainless steel buy generating over $1 million in savings by introducing new global and domestic suppliers to the supply base.
In addition to this, another transportation OEM MMO subscriber, the MetalMiner team completed an add-on advisory project to benchmark existing category management processes and provide strategies to identify and implement specific opportunities to generate cost savings across carbon steel plate, sheet and aluminum. Furthermore, the company generated double digit percentage savings, resulting in multi-million-dollar annual savings and effective management of market volatility.
Moreover, a springs and washer manufacturer decreased their inventory by 8.5% after overbuying material in a tight supply market. The company began to correctly read the long-term trends and adjusted their buying strategy.