I have an item that only four companies in the world manufacture. Management is pushing me to get costs down, but the company I'm working with already has the lowest price and they won't budge. I've been told if the cost doesn't come down by 6%, my project may get cancelled. The company knows they have the best price, so they really don't have a reason to lower their cost any more. What's the solution? Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Are your managers talking about to reduce the cost of that component? Or about to reduce the cost of the whole project? If it is the second situation then search into other items to reduce cost (something obvious, sorry for writting it) Saving Changes...
Anton OosthuizenSenior Business Analyst / Project Manager| Self EmployedPretoria, Gauteng, South Africa
I agree with Sergio. Sometimes there is just nothing you can do about the cost of a specific component but then you have to look at the bigger picture. Where else could you possibly reduce cost? It should be about containing overall project cost, not just an individual component, except of course if the individual component is way out of whack. But according to your explanation, this does not seem to be the case so cost saving on something else should do the trick, or at least get you closer to an approval. Saving Changes...
