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Training Services
AIM&DRIVE®: Cost Challenge
In a business environment where average selling prices are under considerable pressure, the focus on taking cost out of the supply chain quickly becomes a major goal. Many world-class companies have engaged their critical suppliers in a Cost Challenge to meet and beat a specific cost target.
The AIM&DRIVE® process is the engine that drives the development and implementation of breakthrough cost solutions resulting in the removal and/or avoidance of "real" costs in the supply chain. This can only be achieved by REDUCING, CHANGING or ELIMINATING activities that cause costs.
An AIM&DRIVE® Cost Challenge is a business process initiative and must be supported not only by the supply chain leadership, but also by Development and Marketing executives. It is a "process" and not an event. Commodity teams must be willing to commit the time to engage in follow-up activities, not only on the selected project but also leveraging the ideas across the extended enterprise.
Separate Cost Challenges are held with each supplier/project. A Cost Challenge consists of:
- A 1-day face-to-face working session to develop the initial strategy
- Weekly 1-hour teleconferences to monitor performance and expand on the initial strategy. This is recommended for the first 8 weeks after the working session.
- Bi-weekly conference calls for the next 8 weeks (4 calls)
- Semi-annual face-to-face sessions to review the existing strategy and begin the process for a new Primary Cost/project.
| Objectives |
- To engage at least two critical suppliers for each commodity/service in a collaborative cost reduction effort
- To develop action plans for a minimum of FOUR cost reduction ideas on each Primary Cost
- To monitor implementation and expand cost management strategies through weekly/bi-weekly conference calls
- To realize and document quantitative savings and qualitative benefits
- To store and disseminate the cost reduction ideas through an online knowledge base
- To leverage cost management ideas across the organization, especially on new products.
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| Target Audience |
Cross-functional teams from customer and key suppliers. It is IMPERATIVE that each link in the supply chain be represented by decision makers and subject matter experts.
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| Pre-Requisites |
- Team members should have attended the AIM&DRIVE® training session before the face-to-face meeting.
- Team leaders should obtain a username and password from AGI by e-mailing a request to info@anklesaria.com, with "Request preparation log-in info" in the subject line.
- Members of each team must log on to www.aimdrive.com, enter the username and password assigned and complete the "Preparing for a Cost Challenge Working Session" checklist.
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| Certification |
This training is worth 8 Continuing Education Hours toward ISM's C.P.M. Recertification
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