Have you benchmarked your cost of goods and services lately? Before my clients work with me, they will either answer by saying no or not for a very long time or only against our internal performance metrics.
For our purposes, benchmarking is defined as comparing existing pricing, fitness for use, and quality of goods and services to best-in-class external criteria.
Let’s examine a few reasons why benchmarking is important and how it can unlock hidden cost savings:
1. Continuous Improvement
Benchmarking will help you to identify any weaknesses that exist in your current programs. By leveraging the external best practices and knowledge of others, you can work towards turning the weaknesses in your existing programs into strengths.
2. Improve Profitability
Benchmarking will help you to lower your operational costs and give you insight into your existing competitiveness in the marketplace.
3. Competitive Edge
Leverage the power of benchmarking to help you to strive towards obtaining a competitive advantage through lower operating costs, better negotiation strategies, and improved ability to effectively take your products and or services to market.
Now for a quick case study: Jim, the CEO of a large manufacturing company came to me to benchmark their waste hauling/disposal costs at one of their largest facilities. Waste hauling/disposal spend made up a large portion of their annual budget and their costs continued to creep up year after year. Jim wanted us to benchmark their existing waste hauling/disposal program against the Purchasing Results, LLC preferred programs. After many years working with Fortune 500 companies and others, utilizing our preferred pricing programs, proprietary formulas, and analytics as a benchmark, we were able to provide Jim with a new waste hauling/disposal program with cost savings of 45%!
Let me help you!
If you want to know how to save more on your cost of goods and services and how to quickly and easily optimize your existing programs, click here to qualify for your complimentary strategy session with me to explore that…and to find out what you can do to have a results breakthrough.
I have a limited number of appointments available and request that only business owners and executive management who are ready to take the next step and serious about dramatically increasing their results apply for a time to talk.
Jack Trotsky is known by his clients as “The Purchasing Consulting Master” and “Cost Slasher.” His business owner and senior executive clients say he provides a high level of measurable cost savings, a competitive edge, and lower operating costs and increased profitability year over year. Working with Jack requires no out of pocket costs. Pay only for results – you pay nothing until he shows you what you can save. With a Fortune 500 pedigree at GE, ConAgra, and Hunt-Wesson, he launched his purchasing consulting firm in 2015 and has grown it into what is today PurchasingResults.com. Jack has a long history of transforming procurement processes, implementing and managing change while providing a competitive cost advantage for businesses across a variety of industries. He has spoken all over the US and internationally, at universities, as well as at training & employee development workshops and conferences. Jack’s clients include GE, Gate Gourmet, Retail Companies-various projects including negotiated leased space, Large Food Distributors, National Dry Ice Company, Consumer Packaged Goods Companies, Industrial Manufacturers, Service Companies, and Food Manufacturers. He currently resides in the Denver Metropolitan area.
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