AIMDRIVE-AI

  Question to buyers or any procurement or supply chain managers : What is your strategy to keep material cost at current or below planned cost? AIMDRIVE-AI Solution: Use a combination of price and cost intelligence and analysis and proactively engage suppliers in cost-based discussions and negotiations. For example, adopting a fact-based approach for assessing supplier price increase requests has yielded many cost avoidances/reductions. I would engage in the following analysis every time I deal with a supplier price increase request to identify whether the price increase is justified: 1. Price Analysis:  Look at benchmarks related to the trend in price changes over time. This is sometimes sufficient to identify whether the price increase request is justified. 2. Cost Analysis:  This is especially relevant and a must-do after Price analysis is performed, for purchases that are non-industry standard (purchases for which there is no industry benchmarks available because few...

What are some effective cost-saving strategies you've successfully implemented in your company? I’m curious to hear about real-world strategies that have helped companies achieve significant cost savings. In my experience, a lot of cost reduction efforts revolve around switching from one supplier to a more cost-effective alternative. While this approach has proven valuable, I’d love to open a broader discussion on other successful methods. Have you implemented innovative procurement strategies, optimized logistics, renegotiated contracts, streamlined processes, or leveraged technology to drive savings? What challenges did you face, and how did you overcome them? Looking forward to hearing insights from professionals in this space! AIMDRIVE-AI Solution: Adopting a fact-based approach for assessing supplier price increase requests has yielded many cost avoidances/reductions. I would engage in the following analysis every time I deal with a supplier price increase request to iden...

How to analyze whether a Supplier’s Price Increase Request is reasonable? Solution:  This can be determined with  AI MDRIVE- AI   Price Analysis and can be complemented using  AI MDRIVE- AI   Cost Analysis. Visit https://aimdrive.com/   to perform  AI MDRIVE- AI   Price Analysis and   AI MDRIVE- AI   Cost Analysis Example : Consider a product you have been regularly buying over the past year from a supplier at a price of $10.00 per unit. The supplier now informs you that they need to raise their price to $11.00 in view of increasing costs, i.e. a Price Increase Request of 10%. AI MDRIVE- AI  Price  Analysis : Identify the industry of your supplier and obtain the Market Average Price Movement of products sold by this industry. You find that the market average price movement over the past year was -1%. Use this benchmark to challenge the supplier’s Price Increase Request of 10%. However, the Supplier cites an increase of 20% in...