In a context where more and more manufacturers are struggling to survive, this white paper reviews the challenges of competing on price while maintaining acceptable profit margins, and explores the benefits of active collaboration between procurement and other functional groups.
As worldwide competition intensifies and more and more manufacturers try to compete on price, this white paper reviews the impact sourcing decisions can have on a company’s bottom line and explores the benefits of working with value-added suppliers.
The greatest misconception about cost management in procurement today is that price reductions equal cost savings. To help you make better informed sourcing decisions, this white paper reviews the danger of placing too much importance on unit costs and the benefits of working with a supplier who truly understands all the factors that influence the supply chain’s effectiveness and efficiency.
As more and more manufacturers struggle to survive, this white paper reviews the challenges of competing on price while maintaining acceptable profit margins, and explores the benefits of active collaboration between engineering, manufacturing, and procurement.
The push for standards in today’s marketplace certainly does have its advantages. Using standard components makes it easier to manage inventories, and helps facilitate technical support and customer service. For example, if you have only one type of screw in your assembly, and a customer calls to say he is missing one, you’ll know what to send him without forcing him/her to guess what the TPI (thread per inch) is. It can also help streamline your parts vault, because let’s face it; nobody enjoys the task of controlling revisions.
It’s no secret that low-cost competition from overseas, soaring energy prices and the continued strength of the Canadian dollar have combined to expose several weaknesses in the Canadian manufacturing sector. Companies are under the gun as never before to become more efficient and optimize production. The glory days are over and the time has come for companies to realize that they can no longer rely on layoffs alone to stop the attrition.
There are many conflicting opinions concerning inventory management. Minimizing lead times while reducing costs is a daily juggling act that all procurement and inventory management professionals face. While there is no silver bullet or quick fix to this complex issue, there are ways to better control your inventory without sacrificing service.