I. Strategies for saving procurement costs
As far as corporate procurement is concerned, there are many ways to save costs. In summary, there are eight main types:
1. Value analysis and value engineering, commonly known as VA and VE: for new product work: research on the function of a product or service, at a lower life cycle cost, by eliminating, simplifying, changing, replacing And other methods to achieve the purpose of reducing costs. Value engineering is to study and analyze the functions and costs of existing products. Now value analysis and value engineering have been regarded as the same concept.
2. Negotiation: Negotiation is the process of agreement between buyers and sellers to achieve mutual recognition for their respective goals. Negotiations are not limited to price but also to specific needs. Using a negotiated approach, it is often expected that the purchase price will fall by about 3%-5%. If you want to achieve a greater reduction, you need to use price, cost analysis, value analysis and value engineering (VA, VE) and other methods.
3. Early supplier participation in ESI: In the early stages of product design, suppliers who choose partnerships participate in the new product development team. Through the early involvement of suppliers, the new product development team will adjust the strategy very early according to the performance specifications proposed by the supplier, and rely on the supplier's expertise to achieve cost reduction.
4. Leveraged purchases: avoiding separate purchases, resulting in different units in the organization, sourcing the same parts from the same supplier, but at different prices, but not knowing each other, without any loss of opportunity to save on procurement costs. The way to increase the volume of purchases and increase the bargaining space should be concentrated.
5. Joint procurement: mainly occurs in non-profit business procurement, such as hospitals, schools, etc., through the statistics of the demand of different procurement organizations to obtain better discount prices. This is also used in general business activities, such as third-party procurement, specifically for those companies that do not need much.
6. Designed to facilitate procurement, DFP—home-made and outsourced strategies: Facilitate the convenience of raw materials in the design phase of the product, using the standards and technologies of the co-organizers, and using industry-standard parts. This can greatly reduce the technical support required for home-made, while also reducing production costs.
Table Cloth,Round Tablecloth,Home Textile Cloth,Non Woven Tablecloth
Ningbo Etdz Holdings Ltd , http://www.etdztextile.com