In many organisations the purchasing function is carried out by various members of staff each buying for their own particular requirements without employing a consolidated approach. They often overlook existing stock or volume discounts that may be available for their purchases.
For example, a design engineer may decide upon a completely new gear, but he may not know that a gear that could work perfectly well for his machine is already available from a different machine or that someone else required the same item and had already placed an order for it.
Making use of existing resources and consolidating purchases provide cost reductions, not only in terms of the actual cost of buying new equipment or achieving increased cost reductions, but it also reduces the cost in terms of the time spent designing a new piece of equipment.
This is part 1 of our Ryblog showing how and where cost reductions can be achieve.
Look out for our weekly Ryblog which will explore this subject further, or for more information, please contact us.
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