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Best
Practices: Planning Optimize
Usage
| Traditional |
Best Practice |
| Purchasing is concerned only with lowest product/service cost. |
Purchasing
teams with users and suppliers to minimize/optimize product/service use.
Examples:
Purchasing teams with motor carriers to consolidate LTL shipments.
Purchasing teams with users to eliminate low-use copiers.
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| Rationale |
- Minimize unproductive costs
- Create cost savings with suppliers
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| Details |
Purchasing may want to force and active discussion with users for all contracts over $100,000 to ensure cost minimization
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Best Practice | Case
Study | Commentary
April 5, 2000
Copyright © 2000 TransSource Corporation
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