Inventory management tips for manufacturers
If you are in the business of bidding, specifications play a very important role. In writing specifications, the following elements should be considered.
- Do not request features or quality that are not necessary for the items’ intended use.
- Include full descriptions of any testing to be performed.
- Include procedures for adding optional items.
- Describe the quality of the items in clear terms.
The following actions can help save money when you are stocking inventory:
- Substitution of less costly materials without impairing required quality;
- Improvement in quality or changes in specifications that would lead to savings in process time or other operating savings;
- Developing new sources of supply;
- Greater use of bulk shipments;
- Quantity savings due to large volume, through consideration of economic order quantity;
- ! A reduction in unit prices due to negotiations;
- ! Initiating make-or-buy studies;
- ! Application of new purchasing techniques;
- ! Using competition along with price, service and delivery when making the purchase selection decision.