FS-049 Ver 1.2 (Aug 23)
Description
MRO
Strategy
Services
Equipment
Direct Negotiate with Supplier
Yes
Yes
Yes
Direct negotiation with incumbent to determine options to offset increase- ie: SOW optimisation, frequency, specification modifications, fixed prices etc.
Competitively bid sources of supply to uncover lowest market price, include traditional and non-traditional supplier partner's
Yes
Competitive Sourcing Event
Yes
Yes
Explore alternative brands, service approaches, materials, sizes, volumes, specifications etc.
Yes
Alternative products / services
Yes
Yes
Reduce demand for products or services (ie-cut back cleaning services for minimally used facilities or spaces, defer maintenance, control out-of-scope spend
Yes
Demand Reduction
Yes
Yes
Calculate product / service "should-cost" model to manage expense base of program to be is market relevant", "Pass-through inflationary expenses to employees benefitting from program, as applicable
Optimise Service Levels
Yes
Explore alternative sources of supply on a global basis, take advantage of pricing arbitrage
Yes
Best Shoring
Yes
Re-design products or specifications to reduce costs to make, install and maintain. Engage Architectural communities to identify alternatives
Yes
Re-design products / alternative specifications
Yes
Leverage innovation to reduce labour and material costs, make processes more efficient and improve productivity
Yes
Leverage Innovation
Yes
Yes
Standardise and bundle products and services to leverage buying power
Yes
Consolidation/Bundling
Yes
Yes
Calculate product / service should-be-cost to counter unnecessary or overinflated supplier price increases
Yes
Should-Cost analysis
Yes
Yes
Pass-through inflation cost increases to Customers, where applicable
Yes
Pass Through
Yes
Yes
Design supplier partner contracts to limit, delay, manage or eliminate inflation adjustments. Ensure liquidated damage provisions are well defined in agreements before signature, mitigating risk of project delivery schedule
Yes
Smart Contracting
Yes
Yes