Enterprise Cost Management (ECM)

Enterprise Cost Management techniques provide collaborative approaches to reducing costs. Through strategic ECM, companies are finding themselves able to align corporate strategy and functional area execution, allowing them to formalize goals, establish accountability metrics and tracking to ensure timely plan completion and drive external collaboration with multiple groups like partners and suppliers. Using spend-management techniques, supplier network analysis/selection, supply chain analysis and should cost analysis enables the most innovative, disciplined organizations to reap benefits such as:

  • Structured approach to help manage cost
  • Family-based sourcing strategies
  • Visual depiction of Supply Chain, Engineering, Purchasing and Product Assembly
  • Total Cost of Ownership (TCO)-based decision making
  • Enhanced spend analytics accelerate analysis
  • Risk sharing implementation structure

CGN has a multitude of services that can help you achieve these benefits. Developed and grown through innovative techniques and extensive real-world experience, our cutting-edge ECM solutions start with 2 key practices:

  • Product Lifecycle Cost Management – establish a division wide cost management program that includes Idea Generation, Idea/Project definition, tracking, LOS reporting and governance
  • Global Sourcing and Procurement – create strategic sourcing and procurement initiatives to cut costs and establish a “difficult-to-imitate” competitive advantage going forward

Additional Reading:

 Cost Reduction