These days, it doesn't matter what your product is -- any manufacturer can afford to save a few dollars by avoiding unnecessary purchases. Even aerospace and defense (A&D) companies, which were thought to be the exception, have discovered that they, too, need to cease their free-spending ways and are adopting more frugal procurement practices.
Even so, a recent study by consulting firm Deloitte & Touche USA reveals that many A&D manufacturers continue to make fragmented, ad hoc purchases that rob them of buying power and lead to redundant procurement processes. For those who believe the issue is too complex to be addressed with small improvements, Deloitte offers a four-step approach to reducing costs:
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