Lowering costs - SCM's business strategy

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Cathrin Heath 2.jpgLowering procurement cost through targeting inventory more efficiently is high on the procurement agenda for 2011, reports the 2011 Supply Chain Foresight Survey (SCF Survey).

“Cost reduction is never far away,” Cathrin Heath, MD of procurement information solutions provider Ezee-Dex told SmartProcurement, “it compliments organisations’ core efforts to align their supply chains with business strategy.”

Ezee-Dex has provided Procurement information for the last 61 years.

The SCF survey, conducted from December 2010 to January 2011, has noted an increased interest at board level in aligning the supply chain strategy with overall business strategy after the pressures of demand from the economic boom followed by the market contraction of the recession.

Supply chain management must ensure that costs are reduced to aid economic recovery, a cycle the global economy is cautiously heading into, says Heath.

Buy better and reduce your purchasing costs

To make informed purchasing decisions, buyers must have at their fingertips an up-to-date supplier database, says Heath.

Furthermore, “their systems must give them access to the names of key decision makers to negotiate better product and service deals.”

Quality data is the first step to finding suppliers that will give you value for money, but maintaining the integrity of the supplier data ensures continued savings opportunities. Does your organisation have the skills and time to rationalise and maintain your vendor data?

Furthermore, “a database should provide Supply Chain with a means to rate each vendor according to performance – a supplier who continues to perform well against agreed service levels will be a great resource during the recovery, even if it is not the least expensive,” notes Heath.

About Ezee-Dex

Users have access to a massive supplier list and purchasing database, 300 000 products, services and brand names, and can search and list each and every vendor by all the products and services they supply.

Users can identify suppliers by their BBBEE status with scanned copies of accreditation certificates, and can send requests for quotes directly to suppliers.

For more information on how Eeze-Dex can aid your cost reduction initiative, contact Cathrin Heath on Cathrin@edx.co.za
 

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