Category Archives: Cost management

6 ways to derive value from suppliers

Supplier costs directly impact the bottom line. Therefore, companies have typically viewed suppliers as a source of cost that needs to be reduced or as a piggy bank to dip into to increase revenue. And it’s a given: procurement is …

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When cheaper costs you more: a cautionary tale

A recent conversation I had with the quality manager at a supplier who produces tools for milling, drilling, tooling and turning confirmed that Purchased Price Variance (PPV) is alive and well and still creating unintended consequences. Here’s the story. Production …

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Medical billing: if you have to ask what it costs…

I enjoyed Tara Parker-Pope’s recent Well column in the New York Times: Getting Doctors to Think About Costs by Pauline Chen, M.D. Dr. Chen opined about how doctors have been typically unaware of how much various procedures, such as CT …

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