When presented with cost savings opportunities by third parties, or by others within a company, too often those opportunities are turned down. Instead of sharing savings (gainshare) people would rather try to achieve the savings themselves.
Too often this myopic, “not invented here” mentality results in either the realization of little savings or, more likely, the failure to realize any savings at all.
Procurement teams must put their pride aside and understand that additional savings can accrue to them if they engage in gainshare partnerships instead of trying to horde all potential savings to themselves.Continue reading “Gainshare or Retain Share? Obstacles to Collaborative Cost Reduction!”