APS are working with a manufacturing SME client with a turnover of over £15m to reduce its manufacturing operational costs, an area we specialise in.
We have agreed with the owners of the business to hold a cost reduction workshop/drop-in event and seek to engage the whole team at one of their manufacturing facilities. This is now booked for the beginning of Feb.
"So what!" or "What's a cost reduction workshop/drop-in event?" I hear you mutter!
We like to ensure the whole team is engaged and by having the owners sponsor the day, it encourages people to participate. We want to get the ideas from those that work the process every day to provide their input. Just sitting looking at all commercial avenues in remoteness will not yield the optimum results for our client!!! Indeed any future commercial changes will also need the engagement of the shop floor team too!! So lets get them on board.
The event will be asking the team to share their ideas and thoughts, and assess them accordingly, based on benefit and risk. We want to seek ways to remove waste, utilise product life, increase productivity. Nothing scientific, just straight forward honest gut assessment from those closest to the job. But it is important we do this as a team, so it is about what "we" can do as a whole!!
"But why is a procurement business holding a cost reduction workshop/drop-in event on the shop floor? Shouldn't you be just focusing on price and negotiations?" I also hear you ask!!
Answer: Why? We as a procurement business focus on cost. At APS our mission is to support our clients to manage the manufacturing operational costs within their business. Ultimately, this may require supplier engagement, so why not be at the front of the process and drive implementation so that others can focus on their day job!? Welcome to a new forward thinking procurement business!
APS will collate all suggestions and use simple tools to assess the ideas we should implement and the ideas we also choose not to proceed with. Once agreed with the owners, we shall develop a plan based on agreed priorities and then manage the process of implementing!! Even implementing the smallest of ideas can have a big impact on individual moral, so everything will be viewed.
We will also be suggesting that the most innovative/best initiative be rewarded! Why not reward great ideas?
I'm sure that some will have the opportunity to take ownership and responsibility to implement their own ideas too.
If you are a manufacturing SME, what are your cost challenges?
Do you have a cost reduction plan?
Do you have the resource to derive and implement a cost reduction plan?
Think procurement is expensive?
We look forward to sharing the success of the day in the future.
If you want to know more about how APS can provide cost effective support to your business to increase turnover, increase profits, increase productivity, reduce supply chain risks then please get in touch.
Tel: 07515 003472