Cost control (MM)

Responsible departments:

Finance, Supply Chain, Procurement, Inventory Teams

Effective cost control focuses on balancing material availability with inventory investment. Organisations must carefully manage procurement costs, inventory holding costs, freight costs, warehouse operating costs, and obsolescence risks while ensuring critical materials remain available when required.

Accurate master data and regular KPI monitoring enable organisations to identify cost-saving opportunities throughout the supply chain. By analysing inventory holdings, supplier agreements, freight arrangements, stock turns, and obsolete material exposure, businesses can optimise working capital while supporting operational performance and reliability.

  • Monitor inventory carrying costs and stock value.
  • Review procurement and freight expenditure.
  • Identify obsolete and slow-moving inventory.
  • Implement initiatives that reduce supply chain costs.

Inputs

Financial reports, inventory valuations, procurement data, KPI reports

Outputs

Cost reduction initiatives, budget forecasts, inventory optimisation plans

Benefits

Reduced inventory costs, improved working capital, increased supply chain efficiency

Demand Planning & Forecasting

Spare Parts for Assets

Strategic Sourcing & Contracts

Procurement & Vendor Management

Logistics & Shipping

Cataloguing

Repairable Item Process

Inventory Master Data

Warehousing Management

Inventory Management

Fulfill Customer Requirements

Obsolete Review, Revalue or Write Off

Continuous Improvement

Cost Control

Analyse Performance

Materials Management Framework

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"Materials Management is the process of planning, acquiring, handling, and controlling materials used in production or operations. It ensures that the right materials are available at the right time, in the right quantity, and at the right cost."