Modules

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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

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