Infographic – The Procurement Cost Savings Pyramid

1. Demand Management
Reduce unnecessary purchases by aligning buying needs with actual demand.

2. Process Optimization
Streamline procurement workflows to cut time, errors, and administrative costs.

3. Supplier Negotiation
Leverage volume, competition, and relationships to secure better pricing and terms.

4. Strategic Sourcing
Identify and source from the most cost-effective suppliers globally.

5. Contract Management
Ensure compliance and renegotiate contracts to prevent cost leakages.

6. Inventory Control
Minimize holding costs by optimizing order quantities and delivery schedules.

7. Innovation & Collaboration

Work with suppliers on design, technology, and sustainability to unlock long-term savings.

Author’s Bio:

Pankaj Tuteja
Head of Operations – India
https://www.dragonsourcing.com