Modules

Tracking No. 00.00.2010
58
Efficient Procurement of Commodities
& Components
• Techniques and strategies to procure commodities and
components in more efficient ways
– Development of leveraged (multi-plant) agreements for
repeat purchases of standardized items
– Purchasing from standard product line versus ―one-of-akind‖
design
– Negotiation of options for up-front or early payment to lock
in open manufacturing slots
– Consideration of potential for equity investment in key
suppliers
– Early purchasing of raw materials and hold for later
fabrication
– Hedging to reduce or eliminate financial risk
– Executive management sponsorship on all key agreements