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Effective way to reduce the cost of purchase(1)

How to reduce procurement costs has been a troublesome issue for every procurement staff, in our procurement of many raw materials, we often encountered this kind of problem, then how should we reduce procurement costs?


Option 1:

First, we need to fix the problems that we are currently facing: 1. Material piecemeal purchasing2. good price 3. timely delivery of zero inventory 4. Lead time. Part of the problems are interrelated and can not be viewed in isolation. At different stages in your company, you can reconcile these questions into different results. Problems such as fragmented material, you need to see if there are ways to make the material not to be fragmented. You can take ways such as: enterprises through the integration of joint procurement or, to focus on some key suppliers to increase the influence, but if currently there is no solution to the problem of fragmented material, you have to pay for the fragmented, which is relative to high prices or bad delivery. To be sure of no stock , you need to ensure that suppliers can offer materials within the led time. What is more, the need of the company is relatively stable or material requirements can be estimated. It is thought that if a company want to arrange zero inventory, it requires the staffs have very rigorous work attitude. Not every company can do zero inventory. In short, we need to reconcile these contradictory, then find out the right development model for the current company. I suggest you can use document to record the standard cycle of everyday materials, and then passed to the needs of certain ones, so that once there is demand, we can also check, needless to say every time that is responsibilities of procurement. At present, many companies are: more time resource is pressed at the source - Purchasing.