The Importance of Tracking Your Potential Savings

Documented Savings

How good is your supplier? Are you tracking the impact that your supplier has on your bottom line? If not, then perhaps you should start. Suppliers are responsible for delivering quality products that meet customers’ specifications at fair prices with terms and conditions upon which have been mutually agreed. They are also accountable for providing additional support and services to ensure that products work optimally in environments and applications. Because you depend on them to deliver value, you should most definitely be tracking these activities, which impact your bottom line.

Suppliers can impact your bottom line by lowering maintenance costs, reducing transaction costs, providing longer lasting products, helping avoid downtime and saving energy, among other things. These activities are often all quantifiable so you can measure not only the conformance of the product to your specification, but also how the supplier performs with regards to your business goals and objectives.

A plan that can help your business grow is one that consists of a tailored savings program that documents the service value that you can expect to receive. Kaman, for example, has a long history of delivering tangible dollarized value of its services through the Documented Savings Program. This program provides you with the complete value of the services that you are receiving from your supplier, and savings can often far outweigh product acquisition costs. When every part of your business is documented, quantified and tracked, you have the insights you need to help your business and capture savings.

Savings programs can be easy or complex to install in your business but they are all rooted in demonstrating quantifiable savings. If your business could use a boost in its bottom line, maybe it’s time to look at the suppliers you have and make certain they are helping you meet your goals.

 

For more information on Kaman’s Documented Savings Program, please click here.

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David Mayer
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