Gartner Research

China Summary Translation: 'Cost Optimization Secrets: Strategic Sourcing and Vendor Management Realign Costs and Protect Revenues'

Published: 19 May 2016

ID: G00303443

Analyst(s): Twiggy Lo , Stewart Buchanan


Overspending can be reduced, but significant savings are only achieved by restructuring costs through strategic change. Strategic cost optimization depends heavily on successful market intelligence, planning and execution by sourcing, procurement and vendor managers.

Table Of Contents



Cost Optimization Secrets: Strategic Sourcing and Vendor Management Realign Costs and Protect Revenues

  • Key Challenges
  • Recommendations


  • Cost Optimization Strategies Succeed or Fail as a Result of Effective Execution


  • Take Advantage of Business Leaders' Increased Appetite for Change During Times of Economic Stress to Restructure the Organization's Sourcing Strategy and Eliminate Unsustainable Costs
  • Create a Core Cost Optimization Team That Aligns Strategic Planning and Execution Activities With Shared Targets
    • What Cost Is Optimal?
    • Track Cost as a Moving Target
    • Maintain Consensus Under Pressure
    • Reward Team Effort
    • Recognize Value
  • Restructure Operational Spending to Channel Funds Into Initiatives That Drive Business Value, Such as Digital Business Innovation, Competitive Differentiation and the Renovation of Core IT
    • Realign Value
    • Protect Value

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