© 2011 Sixhills Consulting LtdIn looking for savings opportunities, Aggressive Sourcing goes beyond the ‘easy wins’ to deliver value through comprehensive and innovative techniquesSources of SavingsPercentage SavingsTraditional Sources of SavingsValue add3%3%6%4%5%5%7%27%VolumeConsolidation"Tough"VendorNegotiationsTypicalPurchasingResultEliminationof Low-ValueIntermediariesUnbundlingPriceDemandManagementVendorMarginAnalysisWorld ClassSourcingResultEliminating agency directed work, brokers etc.Eliminate "extra" charges and cherry pick componentsShow tradeoffs of using unbranded paper, lower basis weights, fewer colours, etc. Plant level analysis of vendor margins and volume commitments for large jobsTraditionalsourcing resultAggressive Sourcing value addDisguised Client ExampleCommercial PrintDisguised Client ExampleCommercial PrintAggressive SourcingP3
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