The price you pay for an item is only one area to create savings in your supply chain. The reality is you can only go so far to have your supplier reduce their price, or your vendor bring down their rates. Pressing too hard on prices and rates will only result in a sacrifice of quality and service, and may affect the partnership with your vendor.
So how do you unlock the cost saving opportunities beyond price? By locating savings in better supply chain practices, which can be significant. Savings can be generated in many different areas of the supply chain puzzle. By taking a close review of the steps your item takes, from being manufactured to arriving on your shelf, you can find savings beyond price. These cost saving pockets can be located with improvements to payment terms, carton sizes, MOQ’s, container capacities, import and brokerage fees, along with many other places. All of these impact your item’s cost and offer many opportunities to affect your bottom line.
With a Logistical Review and Audit we can locate these areas to create savings beyond price and rates.
Awesome post! Keep up the great work! 🙂