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Home > Cost Reduction Projects

At S4S we carry out stand alone as well as integrated cost reduction projects for clients across all industry sectors. A cost reduction project is "exactly as it says on the tin", a project undertaken to reduce the cost of a specific function in a company. It has to be remembered, however, that there is more to a cost reduction project than simply recommending a solution to reduce costs. You could recommend that Rolls Royce reduces its costs by using inferior materials. The costs of production might be reduced but it doesn't take a genius to work out that the long term effect on the company would, in fact, be negative.

The main expertise of S4S lies in the cost reduction of manufacturing and manufacturing processes. We offer two main cost reduction services at S4S

  1. Make vs Buy
  2. Supplier sourcing, negotiation and management

Fundamentally, these two services are very different. Make versus buy decisions and outsourcing looks at the fundamental benefits of you manufacturing a particular product or component "in house" and contrasts this against the benefits of buying this product or component in. (outsourcing its production).

Outsourcing typically is split into Local sourcing and Global sourcing. Local sourcing has its advantages where the lead times are shorter and the quantities potentially smaller, and Global sourcing comes into its own where the quantities are larger and the lead times not as critical. At S4S we specialise in embracing outsourcing strategies to reduce the manufacturing costs whilst maintaining the required quality levels.

Supplier sourcing, negotiation and management is when a decision has been made in the past to out source, or the product is not a core product or service of the business. In this instance we plan and manage the process including negotiations on cost, terms and deliveries to maximise efficiencies and reduce costs.

In summary, at S4S we provide a full practitioner outsourcing service from analysis to strategy (what to retain in house and the local and overseas sourcing split) through to full implementation of strategy.

NEW SERVICES FROM S4S

NEWS UPDATE

08/05/2008
S4S present at the annual Sub-Con Exhibition
S4S recently made a presentation at the annual Sub-Con Exhibition held recently at the NEC Birmingham.

Steve Dobson MD of S4S gave a comprehensive talk on Sourcing and Managing Indian S...

28/03/2008
S4S helps local inventors launch new security product to market.
Complete with the appropriate certification to the British Standard BS7950 and Police Authority APCO approved “Secure by Design”. The unique device was the idea of two local inventors who approached S...

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