Cost down refers to the practice of reducing cost in the supply chain through the review of actual costs and the adoption of new materials, standards, processes or behaviours to reduce cost. For example, a buyer may walk the supply chain with their supplier and identify opportunities to reduce the supplier’s costs by identifying low or non-value adding activities. Supposing the goods were wrapped in two layers of packaging on the despatch bay and the parties agreed that one layer of packaging would suffice. This would be a cost down initiative. See also Cost Out.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
