Monday, October 20, 2008

Integrating supply to reduce cost

Reduction in cost is the main focus in every company. Sensibly tailored mode to reduce cost will give a better result in the effort made towards this objective. Integrating supply is also an option for better practice of procurement. Before you opt for integrating supply, you need to first step up to standardization in your usage pattern. Once you are through with the practice of standardization, you will automatically see the ways to combat the challenges of Integrating Supply. Better Product, Stronger position of Bargain, Efficient mode of procurement in terms of logistic, payment, etc. will follow only when you practice a systematically planed inventory control.

By Integrating Supply you will benefit in following areas -
  • You will get quality product which is very vital for reducing the cost in long run.
  • You will procure at more economical rate because you have established a partnership in terms of supply of the relevant items.
  • Your interaction will be with limited suppliers, hence more fruitful time you shall have ..
  • Less documentation; hence, you can be more accurate audit.
  • More reliability in terms of product quality.
While integrating supply, you also have to work out following checklists -
  • You have to combat the situation of internal audit in terms of issue aginst the receipt of stocks.
  • Identifying the Right Supplier.
  • Periodically monitor the price as per the rate contract and update accordingly.
  • Relation should not replace the Rules and Regulations.
  • At any cost, you would ignore the routine inspection.
Lastly, by this practice you can take advantage of periodical update on technological advancement and practice and also you can make use of them for in house technical training program, etc.