And this probably understates likely cost savings because it is based on lower procurement costs alone.
More than 70% of executives say their efforts to reduce procurement costs slipped significantly after only a year.
In generation, lower procurement costs and improved efficiency levels compensated for 20% lower output, due in part to plant outages.
The much-ballyhooed "Dual-Use Initiative" was advertised as the Defense Secretary's plan to cut DoD procurement costs by using commercial technology in weapons systems wherever possible.
Still, after another hike in procurement costs last autumn, the Japan Corrugated Association, the industry body, called on its members to start raising cardboard-box prices.
Result: AMX's total procurement costs have dropped 20% and new products take just 7 months to get to market versus 15, says AMX operations head Carl Evans.
All these steps, to say nothing of the research and development and procurement costs associated with the next generation of military hardware simply cannot be paid for within existing budget limitations.
The current estimate of the yearly savings in respect of such costs is approximately JPY 50 billion, compared to LCD panel procurement costs estimated for the fiscal year ending March 31, 2012.
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Credit Nissan's turnaround to a sharp reduction in parts procurement costs and the fact that the company is well on its way to meeting its goal of cutting 21, 000 jobs by 2003.
DoCoMo, meanwhile, ironically benefited from weak demand for new handsets that pushed its procurement costs lower, and it might be the start of a revolution in the way Japanese phones are announced and offered.
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At the military property agency, Mr Olex-Szczytowski plans to raise more than 2 billion zloty by 2009 from selling surplus property, and to cut procurement costs by a tenth through centralised purchasing and online auctions.
In the program, small sari-sari stores benefit from lower procurement costs thanks to the unified sourcing of goods at the Community Store, which serves as a hub for as many as 120 stores in the area.
While these savings are expected to come largely from organizational streamlining, the company will also target areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses, and a significant reduction of suppliers in order to further lower costs and improve quality.
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It also included all costs associated with the legal challenge to the procurement and an estimate of the internal costs associated with the procurement.
As Congress gets a view of the actual costs, it responds by slowing procurement or reducing the final numbers, which drives up unit costs and usually leads to far smaller numbers in the final acquisition.
In 2009 the Pentagon realised that a breach of the Nunn-McCurdy rules on over-budget defence-procurement programmes was inevitable, because costs would exceed the original baseline by more than 50%.
The planning minister, Guido Mantega, touts a shift in procurement from bureaucrats to the internet, which could cut costs by 30%.
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Speaking at the Farnborough Air Show he said the defence industry must cut costs, or the government would have to cut procurement projects.
"By lodging papers with the High Court the bidders are keeping open their ability to pursue the Department for Transport for the costs they wasted on bidding for the cancelled Greater Western franchise procurement, " he said.
Your procurement team works long and hard to negotiate strong contracts and establish policies to keep costs in line with expectations.
Mr Kemp said there would continue to be scrutiny of the MoD's "smart procurement" process with pressure to deliver big projects more punctually and without over-running costs.
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