{"id":70076,"date":"2022-08-16T13:18:59","date_gmt":"2022-08-16T11:18:59","guid":{"rendered":"https:\/\/inverto.com\/?page_id=70076"},"modified":"2024-01-15T08:54:59","modified_gmt":"2024-01-15T07:54:59","slug":"cost-reduction","status":"publish","type":"page","link":"https:\/\/inverto.com\/en\/lp\/cost-reduction\/","title":{"rendered":"Cost Reduction"},"content":{"rendered":"<div class=\"page-banner text-white    is-not-above-the-fold\" data-height=\"720\/65\">\n    <div class=\"page-banner-slider\" data-count=\"1\">\n                    <div class=\"slide-item d-flex align-items-center overlay-dark  \">\n                                    <picture>\n                                                    <source srcset=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/cost-optimization-rafting.jpg\" media=\"(min-width: 769px)\">\n                                                <img decoding=\"async\" src=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/cost-optimization-rafting-468x750.jpg\" alt=\"\" class=\"img-fluid d-block mx-auto bg-image align-desk--center align-mobile--center\" loading=\"lazy\" \/>\n                    <\/picture>\n                                                    <div class=\"container py-5 content-outer\">\n                        <div class=\"col-12 content content-backface-none \">\n                                                            <h1 class=\"h1 is-gradient-divider divider-blue-green\"><span style=\"color: #f39100;\"><strong>Cost reduction<\/strong><\/span> in procurement<\/h1>\n<p>Cost optimization is the central activity of the procurement function, and its importance is particularly pronounced in the United Kingdom amidst the ongoing economic challenges. In light of the recent high levels of inflation that have affected the UK economy, this task today is characterized less by traditional cost reductions and more by the urgent need to avert further increases.<\/p>\n\n                                                    <\/div>\n                    <\/div>\n                            <\/div>\n            <\/div>\n        <div class=\"bg-overlay d-none d-md-block\">\n        <video src=\"https:\/\/inverto.com\/wp-content\/uploads\/2023\/08\/design-element-iStock-1157248993_AdobeExpress.mp4\" poster=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/cost-optimization-rafting.jpg\" width=\"3840\" height=\"2160\" title=\"design-element-iStock-1157248993_AdobeExpress\" class=\"object-fit\" poster muted playsinline autoplay loop><\/video>\n    <\/div>\n    <\/div>\n\n<div class=\"anchor-navigation \" style=\"background: #004d90; color: rgb(255,255,255);background-image: linear-gradient(to right, var(--bs-terciary), var(--bs-secondary));\" data-sticky=\"false\">\n    <ul class=\"list-unstyled\"><\/ul>\n<\/div>\n\n<section class='bg-light py-3 pb-xl-0'><div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><div id=\"about-us\" class=\"anchor\" data-name=\"About us\"><\/div>\n<h2>What makes KGM Strategy <strong><span style=\"color: #004d90;\">special<\/span> <\/strong>as a procurement consultancy?<\/h2><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>As an international consultancy, we are one of the leading specialists for strategic procurement and supply chain management in the\u00a0<strong>United Kingdom<\/strong>\u00a0and\u00a0<strong>across Europe<\/strong>.<\/p>\n<p>Procurement and supply chain management is key when it comes to strategic management, facing future challenges, and generating value for the entire company. Whether it\u2019s decarbonization and sustainability, end-to-end digitalization, or supply chain reengineering and risk management: as a management consultancy with in-depth expertise and many years of project experience in procurement and SCM, we develop individual solutions for your situation.<\/p>\n<p><span style=\"color: #f39100;\"><strong>Our mission is to anchor long-term competencies, allowing your teams to expand further and achieve successes independently.<\/strong><\/span><\/p><\/div>\n<div class=\"col-lg-6\"><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/youtube.com\/embed\/eyE1EhSnMXE?si=PugVRDLEqJsp9mP-\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p><\/div><\/div><\/div><\/section>\n<div class='container  py-0'><div class=\"row \"><div class=\"col-lg-12\"><p>&nbsp;<\/p>\n<h2>Exploiting potential through <span style=\"color: #f39100;\"><strong>cost optimization<\/strong><\/span><\/h2><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>Procurement has become more complex in recent years. The familiar matrix of price, quality and availability has been expanded to include the dimensions of sustainability and capital commitment. Inflation is increasing the pressure to tap cost optimization potential in all dimensions.<\/p>\n<p>Digital solutions already provide support in many areas today, but they require an intelligent strategy and control in order to unleash real benefits.<\/p><\/div><div class=\"col-lg-6\"><p>Buyers need clear goals derived from the overall strategy in order to meet the diverse requirements in the best possible way.<\/p>\n<p>With over 20 years of experience, our experts can advise you on identifying potential for cost stabilization and offer you full support in implementing measures to avert price risks and optimize procurement costs.<\/p><\/div><\/div><\/div>\n<div id=\"inverto-value-protector\" class=\"anchor\" data-name=\"KGM Strategy Value Protector\"><\/div>\n<section class='bg-light py-3 pb-xl-0'><p class=\"text-center fs-3\"><strong id=\"lets-get-real\">PROCUREMENT: LET&#8217;S GET<\/strong> <strong><span style=\"color: #f39100;\">REAL<\/span><\/strong>!<\/p>\n<h2 class=\"text-center\"><strong>The KGM Strategy <span style=\"color: #f39100;\">VALUE PROTECTOR<\/span><\/strong><\/h2>\n<div is=\"tab-content\">\n    <div class=\"tabs responsive-tabs container is-style-leading_numbers overflow-visible\">\n        <div class=\"row \">\n            <div class=\"col-md-5 navContainer\">\n                <ul class=\"nav nav-tabs-02\" role=\"tablist\">\n                                            <li class=\"nav-item\" role=\"presentation\">\n                                                            <div class=\"bg-circle \"\n                                                                                style=\"background-color: #f39100\"\n                                                                    >\n                                                                            1\n                                                                    <\/div>\n                                                        <button class=\"trigger-button active\" id=\"btn-tab-1-0\" data-bs-toggle=\"tab\" data-bs-target=\"#tab-1-0\" type=\"button\" role=\"tab\" aria-selected=\"true\">\n                                <span class=\"trigger-button-title\">What are the current top challenges that companies face in procurement?<\/span>\n                            <\/button>\n                        <\/li>\n                                            <li class=\"nav-item\" role=\"presentation\">\n                                                            <div class=\"bg-circle \"\n                                                                                style=\"background-color: #f39100\"\n                                                                    >\n                                                                            2\n                                                                    <\/div>\n                                                        <button class=\"trigger-button\" id=\"btn-tab-1-1\" data-bs-toggle=\"tab\" data-bs-target=\"#tab-1-1\" type=\"button\" role=\"tab\" aria-selected=\"true\">\n                                <span class=\"trigger-button-title\">What solutions and best practices can KGM Strategy offer?<\/span>\n                            <\/button>\n                        <\/li>\n                                            <li class=\"nav-item\" role=\"presentation\">\n                                                            <div class=\"bg-circle \"\n                                                                                style=\"background-color: #f39100\"\n                                                                    >\n                                                                            3\n                                                                    <\/div>\n                                                        <button class=\"trigger-button\" id=\"btn-tab-1-2\" data-bs-toggle=\"tab\" data-bs-target=\"#tab-1-2\" type=\"button\" role=\"tab\" aria-selected=\"true\">\n                                <span class=\"trigger-button-title\">How can the KGM Strategy VALUE PROTECTOR help me during the negotiation of supplier claims?<\/span>\n                            <\/button>\n                        <\/li>\n                                    <\/ul>\n            <\/div>\n            <div class=\"col-lg-7\">\n                <div id=\"tab-1--tabContent\" class=\"tab-content tab-content-type-02\" role=\"tablist\">\n                                            <div class=\"tab-pane fade card show active\" id=\"tab-1-0\" role=\"tabpanel\" aria-labelledby=\"btn-tab-1-0\">\n                            <div class=\"card-header\" role=\"tab\" id=\"heading-tab-1-0\">\n                                <button class=\"trigger-button trigger-button--icon\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-tab-1-0\" aria-controls=\"collapse-tab-1-0\" aria-expanded=\"true\">\n                                                                            <div class=\"bg-circle \"\n                                                                                                style=\"background-color: #f39100\"\n                                                                                        >\n                                                                                            1\n                                                                                    <\/div>\n                                                                        <span class=\"trigger-button-title\">What are the current top challenges that companies face in procurement?<\/span>\n                                    <i class=\"icon icon-arrow-right\"><\/i>\n                                <\/button>\n                            <\/div>\n                            <div id=\"collapse-tab-1-0\" class=\"collapse show\" data-bs-parent=\"#tab-1--tabContent\" role=\"tabpanel\" aria-labelledby=\"heading-tab-1-0\">\n                                <div class=\"card-body\">\n                                    <div class=\"inner\">\n                                    \n                                                                            <p><iframe loading=\"lazy\" width=\"650\" height=\"366\" src=\"https:\/\/youtube.com\/embed\/64-7cULsuXM?si=QVFlVltZxem-eJkN\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n\n                                                                        <\/div>\n                                <\/div>\n                            <\/div>\n                        <\/div>\n                                            <div class=\"tab-pane fade card \" id=\"tab-1-1\" role=\"tabpanel\" aria-labelledby=\"btn-tab-1-1\">\n                            <div class=\"card-header\" role=\"tab\" id=\"heading-tab-1-1\">\n                                <button class=\"trigger-button trigger-button--icon\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-tab-1-1\" aria-controls=\"collapse-tab-1-1\" aria-expanded=\"false\">\n                                                                            <div class=\"bg-circle \"\n                                                                                                style=\"background-color: #f39100\"\n                                                                                        >\n                                                                                            2\n                                                                                    <\/div>\n                                                                        <span class=\"trigger-button-title\">What solutions and best practices can KGM Strategy offer?<\/span>\n                                    <i class=\"icon icon-arrow-right\"><\/i>\n                                <\/button>\n                            <\/div>\n                            <div id=\"collapse-tab-1-1\" class=\"collapse\" data-bs-parent=\"#tab-1--tabContent\" role=\"tabpanel\" aria-labelledby=\"heading-tab-1-1\">\n                                <div class=\"card-body\">\n                                    <div class=\"inner\">\n                                    \n                                                                            <p><iframe loading=\"lazy\" width=\"650\" height=\"366\" src=\"https:\/\/youtube.com\/embed\/DUG5XzYem4M?si=_r2Acg85dGB1yO-C\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n\n                                                                        <\/div>\n                                <\/div>\n                            <\/div>\n                        <\/div>\n                                            <div class=\"tab-pane fade card \" id=\"tab-1-2\" role=\"tabpanel\" aria-labelledby=\"btn-tab-1-2\">\n                            <div class=\"card-header\" role=\"tab\" id=\"heading-tab-1-2\">\n                                <button class=\"trigger-button trigger-button--icon\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-tab-1-2\" aria-controls=\"collapse-tab-1-2\" aria-expanded=\"false\">\n                                                                            <div class=\"bg-circle \"\n                                                                                                style=\"background-color: #f39100\"\n                                                                                        >\n                                                                                            3\n                                                                                    <\/div>\n                                                                        <span class=\"trigger-button-title\">How can the KGM Strategy VALUE PROTECTOR help me during the negotiation of supplier claims?<\/span>\n                                    <i class=\"icon icon-arrow-right\"><\/i>\n                                <\/button>\n                            <\/div>\n                            <div id=\"collapse-tab-1-2\" class=\"collapse\" data-bs-parent=\"#tab-1--tabContent\" role=\"tabpanel\" aria-labelledby=\"heading-tab-1-2\">\n                                <div class=\"card-body\">\n                                    <div class=\"inner\">\n                                    \n                                                                            <p><iframe loading=\"lazy\" width=\"650\" height=\"366\" src=\"https:\/\/youtube.com\/embed\/M2uHuLw7Zqo?si=MKlChCY4EGyPfAEg\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n\n                                                                        <\/div>\n                                <\/div>\n                            <\/div>\n                        <\/div>\n                                    <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n<p>&nbsp;<\/p><\/section>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-54888\" src=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/bedarfs-budgetmanagement_EN.png\" alt=\"\" width=\"594\" height=\"495\" \/><\/p><\/div><div class=\"col-lg-6\"><p>As part of our potential analysis, we segment and analyze the costs for all procurement goods, purchased products and services by commodity group. We consider both direct and indirect requirements and take into account the current procurement and market situation.<\/p>\n<p>With our benchmarking approach, we have the appropriate strategy to deliver best-in-class solutions in your industry for your entire procurement organisation or for selected resources. In doing so, we do not work with across-the-board cuts, but examine within the framework of demand management what your expenditure structures are like and where there is a need for cost optimization. As a result, you receive concrete information from us on which cost savings can be realised.<\/p><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h2>Effective procurement creates value for every company<\/h2>\n<p>After the analysis phase, we work hand in hand with your procurement staff to analyse the identified potential. To do this, for example, we sound out the procurement markets again and enter into negotiations with your suppliers or qualify new suppliers if necessary. Especially in today&#8217;s world, where remote working from the home office has become indispensable, online auctions are a valuable means of acquiring new suppliers and creating new competition among established suppliers. We would be happy to develop suitable concepts with your employees and implement online auctions.<\/p>\n<p>Cost optimzations can be achieved relatively quickly in many areas &#8211; within a few months. They increase the profitability of your company and have a direct positive impact on the margin. In addition, the freed-up funds are available for investments and thus pave the way for innovations and higher value creation. The goal of our projects is always to build your team into real partners in value creation. To this end, we also offer individually tailored further <a href=\"https:\/\/inverto.com\/en\/expertise\/training-and-building-skillsets\/\">training in procurement<\/a>.<\/p><\/div><\/div><\/div>\n<div id=\"insights-contact\" class=\"anchor\" data-name=\"Insights &amp; contact\"><\/div>\n<h2 class=\"text-center\">Our cost optimization insights<\/h2>\n    <section class=\"module-post-tiles\" data-module-id=\"52379\" data-modul-type=\"animated-numbers\">\n        <div class=\"container\">\n            <div class=\"row\">\n                                    <div class=\"overflow-hidden mb-3 col-12 col-sm-6 col-xl-4\">\n                        <div class=\"image-with-overlay selected\">\n                             <figure>\n                                                                    <img decoding=\"async\" src=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/05\/whitepaper-cover-indirect-spend-new-456x363.png\" loading=\"lazy\" width=\"2000\" height=\"2000\" alt=\"\" class=\"img-fluid tile-image object-fit\" \/>\n                                                            <\/figure>\n                            <div class=\"overlay\">\n                                                                                                    <h5>Article<\/h5>\n                                                                <p class=\"h3 has-link\">\n                                                                            <a href=\"https:\/\/inverto.com\/en\/insights\/demand-management-tail-end-management-optimizing-indirect-procurement\/\">\n                                            Demand Management &amp; Tail-end Management\n                                        <\/a>\n                                                                    <\/p>\n                                                                    <p class=\"excerpt\">Indirect Spend White Paper 2021: challenges, underrated potentials, and opportunities<\/p>\n                                                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"overflow-hidden mb-3 col-12 col-sm-6 col-xl-4\">\n                        <div class=\"image-with-overlay selected\">\n                             <figure>\n                                                                    <img decoding=\"async\" src=\"https:\/\/inverto.com\/wp-content\/uploads\/2019\/09\/should-costing-456x630.png\" loading=\"lazy\" width=\"2200\" height=\"2200\" alt=\"\" class=\"img-fluid tile-image object-fit\" \/>\n                                                            <\/figure>\n                            <div class=\"overlay\">\n                                                                                                    <h5>Article<\/h5>\n                                                                <p class=\"h3 has-link\">\n                                                                            <a href=\"https:\/\/inverto.com\/en\/insights\/fair-procurement-prices-through-should-costing\/\">\n                                            Fair procurement prices through Should Costing\n                                        <\/a>\n                                                                    <\/p>\n                                                                    <p class=\"excerpt\">Avoid inadequate conditions for complex supplier products with Should Costing.<\/p>\n                                                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"overflow-hidden mb-3 col-12 col-sm-6 col-xl-4\">\n                        <div class=\"image-with-overlay custom\">\n                             <figure>\n                                                                    <img decoding=\"async\" src=\"https:\/\/inverto.com\/wp-content\/uploads\/2023\/04\/potatoes.jpg\" loading=\"lazy\" width=\"2200\" height=\"2200\" alt=\"\" class=\"img-fluid tile-image object-fit\" \/>\n                                                            <\/figure>\n                            <div class=\"overlay\">\n                                                                                                    <h5>Client Case<\/h5>\n                                                                <p class=\"h3 has-link\">\n                                                                            <a href=\"https:\/\/inverto.com\/en\/clients\/procurement-optimization-in-the-food-industry\/\">\n                                            Procurement optimization in the food industry\n                                        <\/a>\n                                                                    <\/p>\n                                                                    <p class=\"excerpt\">The aim was to optimize the procurement of direct demands and strengthen the procurement department&#039;s position.<\/p>\n                                                            <\/div>\n                        <\/div>\n                    <\/div>\n                            <\/div>\n        <\/div>\n    <\/section>\n\n<h2><\/h2>\n<h2 class=\"text-center\">Our cost optimization expert<\/h2>\n    <div class=\"mb-3 pb-3\">\n        <div class=\"container-fluid\">\n            <div class=\"row\">\n                                    <div class=\"col-md-6\">\n                        <div class=\"card card-type-02\">\n                            <div class=\"d-lg-flex\">\n                                                                    <div class=\"image\">\n                                        <figure>\n                                            <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/mohamad-kaivan_updated-250x250.png\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/mohamad-kaivan_updated-250x250.png 250w, https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/mohamad-kaivan_updated-75x75.png 75w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                                        <\/figure>\n                                    <\/div>\n                                                                <div class=\"card-body\">\n                                    <h3>Mohamad Kaivan<\/h3>\n                                    <p>Managing Director <\/p>\n                                                                                                                        <a href=\"mailto:office@kgmstrategy.com\" class=\"mail-link\">office@kgmstrategy.com<\/a>\n                                                                                                                                                                                            <a href=\"https:\/\/inverto.com\/en\/contact\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                <\/div>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"col-md-6\">\n                        <div class=\"card card-type-02\">\n                            <div class=\"d-lg-flex\">\n                                                                    <div class=\"image\">\n                                        <figure>\n                                            <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/Katharina_Erfort-1-250x250.png\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/Katharina_Erfort-1-250x250.png 250w, https:\/\/inverto.com\/wp-content\/uploads\/2021\/08\/Katharina_Erfort-1-75x75.png 75w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                                        <\/figure>\n                                    <\/div>\n                                                                <div class=\"card-body\">\n                                    <h3>Katharina Erfort<\/h3>\n                                    <p>Principal<\/p>\n                                                                                                                        <a href=\"mailto:katharina.erfort@kgmstrategy.com\" class=\"mail-link\">katharina.erfort@kgmstrategy.com<\/a>\n                                                                                                                                                                                            <a href=\"https:\/\/inverto.com\/en\/contact\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                <\/div>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                            <\/div>\n        <\/div>\n    <\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Our cost optimization insights Our cost optimization expert<\/p>\n","protected":false},"author":10,"featured_media":0,"parent":70069,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"yes","footnotes":""},"class_list":["post-70076","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/inverto.com\/en\/wp-json\/wp\/v2\/pages\/70076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inverto.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/inverto.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/inverto.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/inverto.com\/en\/wp-json\/wp\/v2\/comments?post=70076"}],"version-history":[{"count":0,"href":"https:\/\/inverto.com\/en\/wp-json\/wp\/v2\/pages\/70076\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/inverto.com\/en\/wp-json\/wp\/v2\/pages\/70069"}],"wp:attachment":[{"href":"https:\/\/inverto.com\/en\/wp-json\/wp\/v2\/media?parent=70076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}