The official business definition of Cost Reduction Strategy in Procurement is a set of processes and practices that aim to reduce the cost of goods and services purchased by an organization. This strategy involves analyzing the total cost of ownership of a product or service, including the cost of purchasing, transporting, storing, and using the item. It also includes assessing the cost of quality, assessing the cost of supplier performance, and understanding the impact of cost reduction on the organization’s bottom line. Additionally, cost reduction strategies can include negotiating better prices with suppliers, taking advantage of bulk discounts, and implementing cost-saving measures such as inventory control, waste reduction, and automation. By implementing a cost reduction strategy in procurement, organizations can reduce their overall costs and increase their profitability.