Total Cost On Purchasing
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What do we look at? Total Acquisition Cost Model Cross-Functional collaboration is essential for reducing Total Acquisition Costs
Eliminate need Policy / Budget changes Extend Life
Co ns Pu ol rc ha Sp idate se en d De ma nd Im Ma Sp pro v ec na ific e ge a me tio n nt
z z z
Cooperative purchasing/ alliances Common specification Leverage
Co Red u ns um ce pti on
z z z
Lower cost specification Optimal service level Design for manufacturing Design for assembly Value analysis Value Engineering
z z z z
Contract consolidation Partnerships Supplier development Long-term agreements
e tur uc str ase Re ly B pp Su se rea ion nt Inc etit me mp ge Co na e Ma tur se s uc Ba str hip ly Re tions pp la Su Re
z z z z z z
Cost Cash Quality Service Innovation
z z z z
Bid-based renegotiations Reverse Auctions Price/performance benchmarking Model “should-costs”
z z z
Volume redistribution Global Procurement Make / Buy
Total cost management
Optimize Total Reduce Total Life cycle Reduce/Eliminate Supply Chain Costs /Ownership Costs Transactions z z z z z z
Optimize physical material flow Integrate logistics Reduce Inventory Taxation / Duties / Customs Transport Packaging
z z z z z
Lease / Buy Tooling / Prototypes Maintenance / Spares Warranty / Life Non recurring
z z z z
E-Procurement Trading exchanges Rationalize part count and suppliers ERP/ P-Card
Eliminate need Policy / Budget changes Extend Life
Co ns Pu ol rc ha Sp idate se en d De ma nd Im Ma Sp pro v ec na ific e ge a me tio n nt
z z z
Cooperative purchasing/ alliances Common specification Leverage
Co Red u ns um ce pti on
z z z
Lower cost specification Optimal service level Design for manufacturing Design for assembly Value analysis Value Engineering
z z z z
Contract consolidation Partnerships Supplier development Long-term agreements
e tur uc str ase Re ly B pp Su se rea ion nt Inc etit me mp ge Co na e Ma tur se s uc Ba str hip ly Re tions pp la Su Re
z z z z z z
Cost Cash Quality Service Innovation
z z z z
Bid-based renegotiations Reverse Auctions Price/performance benchmarking Model “should-costs”
z z z
Volume redistribution Global Procurement Make / Buy
Total cost management
Optimize Total Reduce Total Life cycle Reduce/Eliminate Supply Chain Costs /Ownership Costs Transactions z z z z z z
Optimize physical material flow Integrate logistics Reduce Inventory Taxation / Duties / Customs Transport Packaging
z z z z z
Lease / Buy Tooling / Prototypes Maintenance / Spares Warranty / Life Non recurring
z z z z
E-Procurement Trading exchanges Rationalize part count and suppliers ERP/ P-Card
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