Cost Saving Initiatives in Purchasing & Supply Logic Institute

Course details

Purchasing has the ability to contribute to the financial results of any organization through a cost savings program. The course is an excellent way for Purchasing to gain the confidence of senior management. The course is presented in a practical way for purchasing heads to organize and operate a successful cost savings program. It includes goals, structure, necessary definitions, and suggestions of where to find savings and how to write meaningful reports.

A successful cost savings program is one that lowers purchase costs without reducing quality below the level required to meet end user needs. The program should ask the question what is the right quality. Often parts and materials are designed with a safety factor in excess of what will be required to perform the needs of the user. Once the minimum quality has been determined, no attempt should be made to compromise it. Additionally, delivery should not be compromised by reduced costs. It is important not to make reductions in purchase cost that will result in higher cost of freight, distribution, or after sale service and warranty costs.

Management support is critical for a successful cost savings program. No program can succeed without the funding, resources, and support of senior management. It is important that the Purchasing function be meeting its basic mission – the uninterrupted supply of materials and services meeting the required quality. Until management feels this is happening no cost savings program will have the support necessary for its survival.

The key to a good program is a sound cost savings plan. The plan must support the corporate goals, and purchasing management

About Logic Institute

Logic Institute for Training and HR Development was formed in Bahrain in 2010. It was founded by a group of highly educated and successful Bahraini who are adamant on developing and improving the level of Training in the Kingdom of Bahrain.

Thus, Logic’s management philosophy envisions Logic to be recognized as a leading institution that provides high quality of training, through inspiring its trainees towards their professional development to their outmost performance.

Logic programs are mainly in CIPS, ICM, English Language, IT programmes, Health & Safety (CIEH), Value Engineering , Soft Skills cTheirses, American Petroleum programs (API) and Project Management Professional (PMP). Each section has an experienced head that coordinates and is responsible to the related affairs of the department. Logic is an approved exam center for UK & USA institutions such as CIPS, ICM, CIEH, API, and Value Engineering and it is toward getting other center approvals from various awarding bodies such as LCCI for English, CIPD for human resTheirces, City & Guilds for retail, Cost Engineering and many others.

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