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Three tips of cutting down the cost of safe procurement

Release Time: 2017-07-22 View:

it’s a trend that the proportion of purchase amount to average sale is gradually increasing. So the most direct way to help an enterprise multiply its profits is to cutting down the purchase cost. As we know, the more of the procurement price, the more of the product cost, it’s clear that the procurement cost will directly influence the profits. If the procurement price is too low, it is likely that there are some quality problems. Of course, products with lower quality can’t exist in fierce market competition environment. So how to cut down the cost in the premise of guaranteeing the quality?

Three tips of cutting down the cost:

1. Selection of supplier: Cooperating with a good supplier is one of the key to control the procurement cost. It can guarantee the products quality, the timeliness of delivery to cooperate with a honest and reputable supplier. In particular, if you sign a long-term contract with the supplier, you may get the most favorable price and even the exception of the payment way. So you’d better choose a direct supplier rather than a trade company. By this way, you can save the additional charges from the middleman, the procurement cost will lower with it.

2. Bulk purchase: By increasing the number of purchase and forming the scale purchase, you can increase the bargaining chips with supplier to obtain competitive price. If your purchase quantity is limited, you can choose cooperative purchasing, that is: purchase together with other companies. What’s more, when supplier offer a quotation, he have to count the freight in, the larger of your purchase quantity, the lower of the per product cost on freight. Thus, bulk purchase is certainly an effective way to reduce the cost.

3. Seize the best time: The price will change with the season and the relationship between market supply and demand, so the purchasing staff have to pay attention to the law of value and seize the opportunity of purchasing. As far as the foreign trade of safe is concerned, the price of raw steel, sea freight in different seasons and currency exchange rate have a direct impact on the price of export products. Due to the uncertainty of these factors, the effective cycle of a quotation is usually within a week.