Kitting purchasIng savIngs In pursuIt of
One way to cut costs is to reduce your vendor base, but thismeans selecting suppliers you can really
trust, otherwise the savings won't add up, explains Colmworth’s Kevin Belgrove
In today's competitivemarketplace,most companies are looking to reduce costs.Oneway to do this is to reduce the vendor base and build stronger,more cost effective relationshipswith reliable suppliers. Expenditure formaterials and services are often significant, equating to more than 50 per cent of revenue inmostmanufacturing companies, so supply chains offer an obvious potential source of cost savings.
There are two primary sources of cost savings in the supply
chain. Firstly, to change what is purchased or sold or how and when it is purchased or sold, processed and delivered to the point of use. Secondly, increase the throughput of thematerial in the supply chain to reduce the time frompoint of entry to the chain to final consumption or sale.
In order to provide the lowest price and remain competitive in the electronics industry, it is often possible to reduce time spent
searching for product fromdifferent suppliers and payingmultiple invoice and delivery charges. Colmworth, for example,works closely with clients to support vendor reduction programmes.
sharing the risk
To achieve this goal, Colmworthmust be prepared to share risks, stock and supply a range of components, as well as adapting its systems towork symbioticallywith customers. In fact, there
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Business developmentmanager at Colworth, Kevin Belgrove
Key Functional Testing Electrical Test
Marking Permenancy
X-Ray Inspection
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