Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Savings to the organization >>> Rs. 25 lacs Increase the reduction to rs.100/- mt - Price at Rs.39900 /- mt Savings to the organization >>> Rs. 2.5 crores. Almost about 8% of PBT of an engineering industry CII_Cost Managem ent
Seminar_14thJune11
Strategy
1.Cost Elimination
Commodity Price trends : PP - Plastic
Assess the supply Market Decide Sourcing Strategy Identify Suitable Suppliers
5. Reduce Lead Times 6. Utilize Bulk Discounts 7. Reduce Shipping Charges 8.Collaborate with Suppliers 9.Ask for Employee Suggestions 10. Eliminate Paper Flow
CII_Cost Managem ent Seminar_14thJune11
VMI
Logistics
Consolidation e -Sourcing
The manufacturer (buyer) has access to Vendors Stock data. Buyer manages the pattern of replenishment ordering. Min & Maximum level of consumption is agreed , thereby replenishment levels are maintained. The vendor holds the stock as his Inventory . Critical and Long lead time items are managed under VMI.
approach
Supplier places Inventory at Customers location . Retains the ownership of Inventory Payment is not made until the items are actually sold/ consumed.
Data on the spend pattern is collated from all Group companies. The panel will closely examine the offers and the outcome of the discussions with each supplier are narrowed down and identify the most prospective supplier for the subject commodity All the offers, received from the suppliers, will be carefully evaluated based on the TCO concept (Total cost of ownership and not on the unit rate only).
For each Category of items and total volume, competitive offer will be invited from potential suppliers.
11
12
is an Opportunity to SAVE
CII_Cost Managem ent Seminar_14thJune11