Tuesday, September 10, 2013



Many supply managers believe they are not allowed to go too far in cost supplier . They take the position for several reasons , namely :
In many cases , suppliers do not know their costs , and would not be useful to ask them about it ;
Interpretation of cost calls for an exercise in determination , and differences of opinion will be increased if all the figures had been available ;
Many suppliers will not divulge confidential information costs ; Cost sellers will not determine the market price  Buyers will not be drawn into another supplier costs . Total Cost of Ownership Buyers should estimate the total cost of ownership ( TCO ) before choosing a supplier . Widespread sense , the TCO for the acquisition of non - capital goods include all relevant costs , such as administration , follow - up , expenditing , inbound transportation , inspection and testing , rework , storage , scrap , warranty , service , downtime , customer returns , and lost sales . Acquisition price plus all associated costs into the total cost of ownership . TCO can be used for a number of possible reasons , namely : to mark the occasion of cost reduction ; to assist the selection and evaluation of suppliers ; to provide data for the negotiations ; suppliers to focus on cost reduction opportunities ; to mark the advantage of expensiveness , high -quality items   to clarify and define the expectations of supplier performance   to create a long-term supply perspective , and to predict future performance . Target Pricing Target pricing focus on all the people in the organization in charge of product design rather than in eliminating the cost after production occurs . Target pricing resulted in a reduction boarding company extensively , in ( 1 ) designing for cost , the design engineering section , (2 ) manufacturers to cost , in the part of the production , and ( 3 ) the purchase for a fee , in the part of the supply . The Learning Curve or Manufacturing Progress Function The learning curve provides an analytical framework for quantifying the general recognition principle that a person will be more proficient with experience . Activity - Based Costing Traditional cost calculation showed disruption in the financing of the product because of the way it allocates overhead on the basis of direct labor . In the past , when labor costs are often the biggest expense category , the allocation is made to estimate . However , the cost of materials has overcome labor costs as the single biggest cost factor , the accountant can look at other ways to mengalokai overhead . Basically , activity-based costing ( ABC ) attempts to change the indirect costs to direct cost to undergo the cost drivers behind indirect costs . DISCOUNT Cash Discount Cash discounts granted by each virtual buyer of industrial goods , although the actual discount rate to be issues of custom and modify individual trading once from one industry to another . The purpose of the discount is to secure immediate cash payment of an account .

Trade Discount
Trade discounts given by manufacturers to the buyer because the buyer company is a distributor or user type . Generally , they aim to protect the distributors make it more profitable on a buyer to buy from a distributor rather than directly from the manufactures . multiple Discounts In many industry and sales , price discounts dikuota in multiple base . For example , 10 , 10 , and 10 means that , for an item listed at $ 100, the actual price to be paid buyer is ($ 100-10 % ) - 10 % ( $ 100 - 10% ) - 10 % ($ 100-10 % ) = $ 72.90 .
Quantity Discounts
Quantity discounts are given on the purchase of a certain quantity and forcibly change the proportion of purchased .
Quantity Discounts and Source Selection
Quantity discount is a question of interest to many buyers to the second reason : all quantity discounts , and especially the cumulative type , limiting the number of suppliers , thereby impacting on the choice of source .
Cumulative or Volume Discounts
Another type of quantity discount is cumulative and varies in proportion to the quantity of purchase ; but , instead of computing the size of a placed order at one time , is based on the quantity of purchases through periods . Discon usually given as an incentive from the ongoing protection .

Negotiation is the meaning of the longest and most expensive of the pricing . Negotiation requires buyers and suppliers , through discussions , which brought general agreement in the contract to buy / sell that important , such as delivery , specifications , warranty , price , and approval .

Negotiation Strategy and Practice
Negotiation is a reasonable expectation of buyers and sellers . This is a reasonable limit of negotiations to declare unequivocally that the supplier : Operate in an efficient behavior  Keeping the price balanced with the cost .  Not taking advantage of the privileged position .Make proper and reasonable adjustment of the claim . Being a provider to respond to the special needs of the buyer organization .

References :
Leenders , Johnson , Flynn and Fearon , Purchasing and Supply Management , 13rd Edition , McGraw - Hill Inc. . , 2006



Post a Comment

Get this widget!