of purchasing volumes and the effect of bulk buying
As purchasing has gone global, companies need to review their purchasing strategies. In many sectors, suppliers play an important role in the production process and have thus become strategic partners. In-depth analyses of purchasing volumes form the basis of supplier-specific procurements strategies and are therefore crucial for cooperation with suppliers.
Strategic realignment in purchasing is becoming ever more common in the manufacturing industry. Traditional structures where suppliers were kept at arm's length and where prices and contract terms were the only topics of negotiation are no longer adequate. To remain profitable, companies must recognise their suppliers as strategic partners who play a critical role in the development process (extended workbench, JIT, JIS, system suppliers, etc.). FACTON EPC assists companies in developing new, tailor-made purchasing strategies, for example by analysing their purchasing volumes or evaluating the product ranges of their suppliers. Today, purchasing managers use risk minimisation, commodities, dual or single sourcing, and standardisation in order to get the best value for money. With FACTON EPC, these options can be analysed quickly and easily with regard to their effect on product costs.
Analyses of purchasing volumes and strategies with FACTON EPC.
At the push of a button, FACTON EPC provides you with analyses for specific purchased parts, materials, or services. These analyses provide users with detailed information regarding the use of a specific cost component (frequency, timeframe). In this process, different components from a single supplier or manufacturer can be identified and their use can be analysed across all current projects.
FACTON EPC enables users to consolidate information on purchasing quantities. For each component, the volumes and suppliers can be called up at a push of a button. Contracts with suppliers covering multiple projects and the resulting discounts can easily be evaluated regarding cost savings. In addition, FACTON EPC allows users to compare multiple scenarios, for example, as regards advantages arising from choosing different suppliers, or the effect of leveraging quantities in connection with multi-sourcing products. As material and product groups can be combined through FACTON EPC across multiple projects, the activities of project purchasing managers and commodities buyers can be linked.
Greater transparency and reduced risk
Purchasing volume analyses of identical or similar parts and material groups are indispensable for cost-effective procurement. In-depth analysis of the material groups and order packages enable companies to revise their supplier-specific purchasing strategies. Risks, for example, as regards failure safety and product quality, can be identified in a most comprehensive and transparent manner. As a result, action can be taken to minimise risks, for example, by dividing order packs and balancing order volumes across multiple projects, or through supplier development and verification, multi-sourcing, etc.
FACTON EPC assists companies in preparing their quarterly or annual meetings with customers. For effective negotiation, purchasing volume analyses and the effect of bulk buying can be discussed and simulated during meetings.