Total Cost on Purchasing
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Bid-based renegotiations Reverse Auctions Price/performance benchmarking Model “should-costs” Volume redistribution Global Procurement Make / Buy Optimize physical material flow Integrate logistics Reduce Inventory Taxation / Duties / Customs Transport Packaging Lease / Buy Tooling / Prototypes Maintenance / Spares Warranty / Life Non recurring E-Procurement Trading exchanges Rationalize part count and suppliers ERP/ P-Card Contract consolidation Partnerships Supplier development Long-term agreements Eliminate need Policy / Budget changes Extend Life Cooperative purchasing/ alliances Common specification Leverage Lower cost specification Optimal service level Design for manufacturing Design for assembly Value analysis Value Engineering Reduce Consumption Consolidate Spend Improve Specification Cost Cash Quality Service Innovation Total cost management Purchase Demand Management Supply Base Management Restructure Relationships Increase Competition Restructure Supply Base Optimize Total Supply Chain Costs Reduce Total Life cycle /Ownership Costs Reduce/Eliminate Transactions Total Acquisition Cost Model Cross-Functional collaboration is essential for reducing Total Acquisition Costs What do we look at? What do we look at?
description
it is talking about how to effectively manage the purchasing material cost
Transcript of Total Cost on Purchasing
Bid-based renegotiationsReverse AuctionsPrice/performance benchmarking Model “should-costs”
Volume redistributionGlobal ProcurementMake / Buy
Optimize physical material flowIntegrate logisticsReduce InventoryTaxation / Duties / CustomsTransportPackaging
Lease / BuyTooling / Prototypes Maintenance / SparesWarranty / LifeNon recurring
E-ProcurementTrading exchangesRationalize part count and suppliers ERP/ P-Card
Contract consolidationPartnershipsSupplier development Long-term agreements
Eliminate need Policy / Budget changesExtend Life
Cooperative purchasing/ alliancesCommon specification Leverage
Lower cost specification Optimal service levelDesign for manufacturingDesign for assembly Value analysisValue Engineering
Redu
ceCo
nsum
ption
Cons
olida
teSp
end
Impr
ove
Spec
ificat
ion
CostCash
QualityService
Innovation
Total cost management
Purc
hase
Dem
and
Man
agem
ent
Supply Base Managem
ent
Restructure
Relationships
Increase
Competition
Restructure
Supply Base
Optimize TotalSupply Chain Costs
Reduce Total Life cycle/Ownership Costs
Reduce/EliminateTransactions
Total Acquisition Cost ModelCross-Functional collaboration is essential for reducing Total Acquisition Costs
What do we look at?What do we look at?
Liu
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