FOR RELEASE: March 12, 1999
||NAPM Media Relations|
||602/752-6276 ext. 3015|
(Tempe, Arizona) In the recent re-design of Purchasing Today® magazine, one of the editorial changes includes, "Strategies & Solutions." Every month this section provides readers with concrete answers to the purchasing and supply function's responsibilities. In the March 1999 issue, Strategies & Solutions takes a look at cost-cutting ideas.
- The following are examples of obtaining ideas from internal users:
Sales and marketing: Often overlooked, the sales and marketing department has its finger on the pulse of the end user market. Potential areas of opportunity include product application, specifications, product design, and price.
Production associates: Responsible for changing raw material to finished goods, production associates can close in on process, cycle time, leadtime, and product standardization ideas.
Computer and software: Establish a consolidated and centralized procurement with your organization's information and technology department.
Research and development: Review the preferred supplier list and seek feedback on supplier components from the research department.
Customer service: Ascertain that the organization is working on the right product/service stream.
- To identify strategic cost reduction opportunities, purchasing and supply can follow these suggestions:
Conduct periodical brainstorming sessions
Focus on supplier relationships and partnering, not just price
Include key internal users when suppliers tour your organization
Ask for internal users to discuss problems, issues, and concerns
Involve internal customers in annual supplier evaluations
Develop qualitative surveys and a supplier rating system
Purchasing Today® is NAPM's monthly publication and is a benefit exclusively for NAPM members. For information about receiving Purchasing Today® and becoming a member of NAPM, call NAPM Customer Service at 800/888-6276 or 602/752-6276 extension 401.
The National Association of Purchasing Management is a not-for-profit association that provides national and international leadership in purchasing and supply management research and education. The association exists to educate, develop, and advance the purchasing and supply management profession. NAPM provides members and non-members alike with opportunities to expand their professional knowledge and skills. NAPM is comprised of 180 affiliates with more than 44,000 members throughout the United States and Puerto Rico. Visit the NAPM Web site at www.napm.org.