1-8.1 Determine Possible Levers

The lever(s) selected should be the most effective and nondisruptive in reducing costs for the particular need. Examples of levers include:

• Address learning curves.
• Consortium buying.
• Demand management.
• Distribution alternatives.
• eCommerce and technology possibilities.
• Equipment availability.
• Innovations.
• Inventory reduction.
• Lead-time and cycle-time reduction.
• Partnering, forming alliances with suppliers.
• Reliability and maintainability.
• Supplier consolidation.
• Substitutes.
• Sourcing methods.
• Standardization.