Quality cost reduction and sustainable cost management

“Cost reduction” is a common phrase, but what is “Quality cost reduction”? DFA Management defines “Quality Cost Reduction” to mean savings in alignment with our client’s corporate strategy and with operational excellence. For example, is supplier viability a threat to operations; is there a measured diversity mandate; is the commodity mission critical and procured now through a faltering supplier?

By “Sustainable Cost Management” we mean achieving deal sustainability by structuring and infusing the desire for performance excellence, and perfect compliance in both client and supplier organizations. For example, is there a healthy relationship between client and supplier, is each organization getting what it needs, is there a structure to support the relationship, is there a sophisticated, predictable, manageable solution to future price changes, are the divorce terms defined as well as the marriage terms in order to insure an orderly, safe transition for the client?

Our Quality Cost Reduction and Sustainable Cost Management methods bring to our clients these results:

• Identification and satisfaction of all requirements
  in service of our client’s corporate strategy
  

• Rigorous market intelligence and the active recruitment
  of the best potential suppliers
  

• Improved stakeholder operations
  

• Predictable, manageable price changes
  

• Clear contract terms governing the marriage and the divorce,
  protecting client operations
  

• The ability of our client to assume strong supplier management
  through the development of a thoughtful, bi-lateral
  Service Level and Sustained Service Management Agreement