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Hub You - Suppliers as Your Partners in Cost Reduction
A few years ago I worked with three other coaches to facilitate a program for a medium-sized financial services company. The company was started several years earlier by their up-and-coming CEO and is still privately held. Our program was built around the topic of internal communications. This company has always had a great outward appearance to its customers, but internally there was much room
To earn a “preferred” status means that your supplier will have the first shot to quote on new business, parts and project. In fact you can go so far as to create “earn a point” program every time you achieve your cost reduction goals using these techniques as they apply to your busines
An easy way to stay on track during a job search is to set a goal, and with each goal there is a process you must follow to get to the end result. Finding the perfect job can be equated to playing a round of golf; in golf the idea is to get the lowest score on eighteen holes as you possibly can. At the end of the eighteenth hole you add up your score and see what the final tally is.When you have a go
Oh but wait, to find any value in this article, you must be a firm believer that Purchasing strategies have evolved from just 1) focusing on price and 2) focusing on quality, reliability, responsiveness and total cost to a much broader focus of building supplier relationships.
Did you know that for each $1.00 you save in your “total cost of ownership” reduction efforts, you will improve your bottom line profitability by $1.00? And did you also know that most companies do not get this concept and continue focusing their resources in all the wrong places?
Now is the time when I want to share with you 4 basic rules that have proven to work and work very well to help you create the partnership relationship with your supplier and allow them to equally benefit from the experience as well.
Rule #1: Getting direct cost savings is really a thing in the past. Getting savings has become increasingly difficult to achieve as your suppliers face similar predicaments themselves and operate with very little room in their margins to wiggle.
Rule #2: To affect your bottom line, using 80/20 rule, work on reasonable incentives to approach your top 20 suppliers with and build a “preferred” supplier base.
Rule #3: Communicate to your suppliers on “how to” earn a “preferred” supplier status and what is required of them to remain a “preferred” supplier.
Rule #4: Tell your suppliers what’s in it for them (WIIFT) as they partner with you and build a “preferred” relationship.
To earn a “preferred” status means that your supplier will have the first shot to quote on new business, parts and project. In fact you can go so far as to create “earn a point” program every time you achieve your cost reduction goals using these techniques as they apply to your business
Marketing is magic. Now, the magic in marketing is to get it all done before you even have a product. That was the advice I got when I first started out in business.The person who told it to me was an old friend of my family. He was a magician by profession and he was also a multimillionaire marketer. He created more than a dozen businesses, built them up into money-makers and sold them.A
Did you know that for each $1.00 you save in your “total cost of ownership” reduction efforts, you will improve your bottom line profitability by $1.00? And did you also know that most companies do not get this concept and continue focusing their resources in all the wrong places?
Now is the time when I want to share with you 4 basic rules that have proven to work and work very well to help you create the partnership relationship with your supplier and allow them to equally benefit from the experience as well.
Rule #1: Getting direct cost savings is really a thing in the past. Getting savings has become increasingly difficult to achieve as your suppliers face similar predicaments themselves and operate with very little room in their margins to wiggle.
Rule #2: To affect your bottom line, using 80/20 rule, work on reasonable incentives to approach your top 20 suppliers with and build a “preferred” supplier base.
Rule #3: Communicate to your suppliers on “how to” earn a “preferred” supplier status and what is required of them to remain a “preferred” supplier.
Rule #4: Tell your suppliers what’s in it for them (WIIFT) as they partner with you and build a “preferred” relationship.
To earn a “preferred” status means that your supplier will have the first shot to quote on new business, parts and project. In fact you can go so far as to create “earn a point” program every time you achieve your cost reduction goals using these techniques as they apply to your busines
The greatest challenge in a trade show is to convey your message forcefully and effectively in the three seconds that customer spends walking by your trade show booth. It is important that your booth looks attractive and grabs the attention of customers by clearly showing the identity of your company and its products. The right booth can create a lasting first impression.Full size custom graphics an
Rule #1: Getting direct cost savings is really a thing in the past. Getting savings has become increasingly difficult to achieve as your suppliers face similar predicaments themselves and operate with very little room in their margins to wiggle.
Rule #2: To affect your bottom line, using 80/20 rule, work on reasonable incentives to approach your top 20 suppliers with and build a “preferred” supplier base.
Rule #3: Communicate to your suppliers on “how to” earn a “preferred” supplier status and what is required of them to remain a “preferred” supplier.
Rule #4: Tell your suppliers what’s in it for them (WIIFT) as they partner with you and build a “preferred” relationship.
To earn a “preferred” status means that your supplier will have the first shot to quote on new business, parts and project. In fact you can go so far as to create “earn a point” program every time you achieve your cost reduction goals using these techniques as they apply to your busines
Industrial Weight scales have a large number of applications. Scales can be used for shipping, warehouse, general weighing, analytical and parts counting scale and digital industrial cranes can be used for super heavy loads.A weighing scale is used industrially and commercially to weigh objects from feathers to tractors. A weighing scale measures the weight or mass of an object. A balance for instanc
Rule #2: To affect your bottom line, using 80/20 rule, work on reasonable incentives to approach your top 20 suppliers with and build a “preferred” supplier base.
Rule #3: Communicate to your suppliers on “how to” earn a “preferred” supplier status and what is required of them to remain a “preferred” supplier.
Rule #4: Tell your suppliers what’s in it for them (WIIFT) as they partner with you and build a “preferred” relationship.
To earn a “preferred” status means that your supplier will have the first shot to quote on new business, parts and project. In fact you can go so far as to create “earn a point” program every time you achieve your cost reduction goals using these techniques as they apply to your busines
As the name of our website suggests we help you in managing your finances when you think it is time that you had a baby but are worried about the cost and responsibility of a new life on your shoulders and pockets.Expecting a baby soon? Worried how you’ll be able to manage in the limited finances after it’s born? Worried about your child’s higher education? Well, we have the solution to your problems
To earn a “preferred” status means that your supplier will have the first shot to quote on new business, parts and project. In fact you can go so far as to create “earn a point” program every time you achieve your cost reduction goals using these techniques as they apply to your business.
Supplier earns a previously agreed upon point(s) when:
1) Shared tooling costs or shared engineering costs on a project
2) Extended terms: 60 or 90 day billing terms for a period of one year
3) Certified as “ship to stock” on all supplied parts or assemblies for a period of one year and remain compliant for every year thereafter
4) Ship zero defects for a period of one year and continue as such for every year thereafter
5) Work with purchasing, manufacturing or engineering to add value
Working with your suppliers to explore these techniques not only presents opportunities for you to reduce your “total cost of ownership” but also helps your suppliers to review, improve and streamline their processes and grow internally to be able to meet your expectations and earn that “preferred” supplier status.
Use this “total supply chain cost” model as your guide to isolate and focus on the actual cost elements impacting your bottom line profitability.
Total supply chain cost=
Buying price=
+Supplier performance cost
+Cost of acquisition
+Out-of-sync planning
-Speculation returns
+Speculation cost
+Mfg. cost
+Selling cost
+Distribution cost
+Profit
=Selling price
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