how to reduce purchase cost

Posted on 2016-06-23 by SourcingHelper Team

1, value analysis. Whether the procurement of any kind of material to function for a product or service, before purchasing to understand bought the cost structure of the material, understanding supplier production finished the source of raw materials prices, collected different aspects of material procurement information, geographical differences, and accurate price.

2, negotiations. Control purchasing cost is one of the important link, the value analysis as the foundation has to negotiate, accomplish tell foregone the other, victorious, expected to reduce prices the magnitude of is personnel procurement negotiation skills.

3, select the appropriate suppliers. A good supplier can be with your common development, to give advice and suggestions of your development, cost saving. Select suppliers mainly from the quality, price, service, technical strength and other considerations, especially in the early stage of product development, can use the expertise of suppliers to achieve the purpose of reducing costs. Suppliers should not be replaced frequently, conditions are ripe, achieve supplier delivery stand-by, avoid stop transferring risk and backlog of material risk, virtually save the purchasing cost.

4, standardization. Products, fixtures or parts using common design, specifications, as well as the use of industrial standard parts, increase the convenience of procurement, reduce procurement costs, to obtain greater benefits

.5, bulk or joint procurement. Combined with the demand of different departments or production units, to focus on expanding the purchasing volume, increase the bargaining space and discount, to avoid the same suppliers to purchase the same material but the price is different, the loss of the opportunity to save the cost of procurement.

Why Sourcing agents ccould reduce costs

Purchasing agent has the characteristics of cheap, efficient and fast.

A new type of material purchasing mode

china sourcing agent