Cost Reduction by Finding Suppliers of Cheaper Products and Services

Some of your largest overheads will be the costs of the products or services that you buy in from your suppliers. When you do a cost reduction analysis for your business you need to be able to identify areas where costs can be reduced, and your list of suppliers should be high up in that analysis.

It is advisable to review your list suppliers every six months or so to keep a close eye on what they’re costing you anyway as there’s often an opportunity to cut costs that might otherwise be missed. That said it’s about cutting costs not corners, so working with your suppliers instead of against them builds rapport and trust and paves the way for cost negotiation.

Once you’ve built a good rapport with your suppliers it’s relatively easy to get a 1% reduction in costs from them. In today’s economy suppliers are keen to keep your business so they are often open to negotiate a price, especially if your business is a seasoned buyer.

A good cost reduction strategy is to…

  • First identify your top three most expensive consumables.
  • Source alternative but reliable suppliers. The internet is a great resource for finding alternative solutions.
  • With the list of alternative suppliers, go to your current suppliers and ask for a 1% reduction or you will try the alternative suppliers.
  • Try them anyway; a new supplier with cheaper costs will give you some bargaining power.
  • If you are buying in parts or assemblies for a product that you are manufacturing you can sometimes work with your suppliers to design out cost. They can tell what is expensive to make and how to take cost out through good design.
  • The reliability of any products or services including technology based ones can now be assessed using the Internet. So before you buy, read the reviews on the Internet. Type in the product name and add the word,”problems” to the search to identify whether the product has any issues.

If your company has been using the same suppliers for some time there is a real possibility that they will be receptive to your approach and welcome an opportunity to retain your business.

When you contact your suppliers make the call yourself don’t outsource it to a colleague who may have never spoken to the supplier before, the personal touch is always appreciated and will aid the negotiation.

Avoid using the alternative supplier as a yard stick to beat your current supplier’s prices down, but be firm in your resolve and a 1% cost reduction will be yours.

Assembly Services Are Widely Available and You Should Easily Be Able to Get Services That You Need

Injection moulding is one form of assembly services and many people are quite unaware of what this sort of process involves. If you run a production line or a manufacturing company then you’ll probably be aware of what this process can achieve.

A lot of companies use services like this and you will find that it is a great way to speed up manufacturing and the process is actually quite simple. Toys, cars and other large production lines regularly use injection moulding.

Most of the time, this process is used to produce duplicate plastic objects. For example, a car manufacturer may use this form of production in order to create seat belt holders or perhaps caps to go on radiators.

The simple process is very fast and this is one of the main reasons as to why it’s so popular. Assembly services like this are quickly becoming the only way that production companies create products. It’s a step by step process that involves little supervision.

A mould is used and then plastic is leaked into this mould which then presses into the shape required. Once the mould is cooled it can then be released and there you have it – a plastic object is made. Obviously, there are a few more steps involved but the basic steps are simple.

If you have a manufacturing company then assembly services such as this will be very valuable to you. You should definitely consider it an option at least. Speed and accuracy are the main reasons that it’s so popular.

If you are looking for high speed, accurate and simple processes then this type of moulding will really help you out. There are a variety of different assembly services available but the most popular, by far, is injection moulding.

Most of the time, this process only works properly with plastic because it’s easily moulded and formed. You will find that other products are made with a service of some sort but most of the time machines are involved to speed up the process.

These processes are mostly popular because they’re cheap as well as being fast and simple to implement. A lot of large companies use these processes on a daily basis, most of the time producing thousands of products per day.

You will need to do quite a bit of research before you decide on an assembly services provider. There are lots of options available but this isn’t an impulse purchase that you can make. You will have a lot to think about.

Overall, it’s no surprise that assembly services such as injection moulding are so popular. Speed, accuracy and cost effective services are very popular – and for good reason. As the demand for products increases, so does the demand for speedy production.

If you are at all interested in using a process that I’ve mentioned then you should do a lot of research into what’s currently available on today’s market before you part with any money.

Why Do I Need a PCB Assembly Service?

PCB is required for the mechanical support of any type of electronics product. This is in the form of a card or a board which is made up of thin metal or hard plastic commonly known as the insulator. The chips of the electronic devices are mounted on this card or the board. The PCB is used in the smallest device like the mobile to larger electronics devices like the computer and the television. The PCB which has not been fitted with any component is called PCB as it is raw but when the electronics components are mounted it is called PCB assembly service.

Why is PCB Assembly Service Required?

In the modern world technology is developing at a fast rate so many changes are taking place in the operational functions of all the electronics devices so most of the electronics devices which are of the old model is becoming outdated and the components or the parts are not available easily. At this juncture it becomes necessary to either get a new model or update the existing model of the electronics goods whether at office or at home.

The resale value of the old models are very low so if the PCB assembly service is changed and the new PCB board or card which is mounted with the latest chips is fitted in the electronics device then the device can be updated at a lower cost than purchasing a new model. These boards are available in three types which are single sided, double sided or multi layered.