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Reviewing Business Processes can Contribute to Reducing Total Acquisition Costs

By Bearing Manufacturer>Bearing News>Reviewing Business Processes can Contribute to Reducing Total Acquisition Costs
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Brammer, the UK?s leading supplier of maintenance, repair and overhaul (MRO) products and services, has advised UK manufacturers that reducing total acquisition costs should not begin and end with component procurement C but can be applied with significant results to business processes such as reducing a company?s supplier base and the range of products and services required.

Jeremy Salisbury of Brammer explained: ?There are a number of proven ways in which value can be added through the identification and delivery of cost savings in both the business processes related to the management of maintenance spares operations and the procurement of the parts themselves.

?One key area where cost savings can often be identified in the procurement of components is through OEM part conversion C understanding which parts are purchased from the OE manufacturer, identifying those that are standard items that can be easily sourced elsewhere, and then using the purchasing leverage of a specialist MRO supplier to supply them at the best available price.

?This can help to free up working capital, reduce spares stockholding and contribute to an engineering standardisation programme. It also negates the need to wait for days or weeks for an OEM to supply a spare C it can be there within days or even hours if needed.

?And, as usage patterns emerge, additional reductions in working capital are often achievable through other added-value services such as product and brand rationalisation and optimised inventory profiling.?


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