I Will Beat Your Best Price and Lock It In

Here are the main savings methods as taken from the published article, “Maximizing Savings, 21 Key
Components to Maximum Savings for Your Company” The article is based upon 30 plus years of experience
and research in saving clients’ money.
1. All things equal, getting a better price.
2. Equivalent product, better price.
3. Adequate product (usually an import) lower price.
4. Volume contract pricing discount on specific line item
or category of product resulting in lower price.
5. Annual or period volume usage agreement with
releases.
6. Service level pricing, purchasing based upon the
overall cost savings, technical service and resources
provided by the supplier equated in price. Sometimes,
you will pay more because of the solution the supplier
brought to the table.
7. Consignment – Minimizes the money you have tied up
8. Inventory resupply service, reducing inventory levels
or money you have tied up inventory.
9. High level inventory control device (vending) to
minimize waste, increase tool utility, increase on-site
inventory consistency. 20-40% savings
10. Advanced inventory management capabilities through
inventory management software. Reduce on hand
inventory to an analyzed level without running out.
11. Advanced inventory management capabilities with a
vendor Kanban system where the vendor holds
inventory on your site. Thus reducing the amount of
money your company has tied up on the floor.
12. Product rationalization to minimize the amount of
inventory of different items there by reducing your
overall inventory requirements.
13. Depleting or leveraging obsolete or dead inventory
through utilization initiatives in production, internet
excess inventory listing and sale or through inventory
brokers. Lastly inventory tax write off.
14. Complete crib automation with RFID in conjunction
with vending. This will require minimum supervision
and oversight by personnel and will allow for previous
personnel to be assigned more value added
responsibilities.
16. Advanced inventory management software feature
implementation of access limits based upon
personnel’s job function and material needs. This
limits users to only be able to get materials approved
for, thus resulting in reduced mis-vends, pilferage,
waste and lost inventory.
17. Advanced inventory management software feature
implementation of usage limits based upon a jobs
requirement for tools. The limit can be set to only
allow X number of tools per day or shift for a specific
job. Thereby minimizing excess usage or providing an
alert to potential excess use situations.
18. Recycling, Reuse, Regrind and Repair is a huge area
for cost savings. Whenever and where ever an item
can be repaired, reground or have a second or
multiple use, then it should be explored and
implemented. The effects can have a dramatic effect
on overall spend.
19. Implementing higher productivity tools ultimately
adds to the overall potential of sales in a given year.
The faster you can produce the more capacity you
have for overall production and sales. Continuing to
strive to do it faster with better tools provides long
term savings and adds to the bottom line overall
sales.
20. Testing and implementing longer lasting products
and tools pays high dividends due to increased
production time due to minimizing tool changes and
increase in associate efficiency. Ultimately, saving
time and often times with equal or better pricing.
21. The ultimate is a product that is faster, lasts longer
and is less priced than what is currently taking place.
© Copyright - 2014, John P. Merk
15. Just implementing state of the art inventory
management software can provide huge gains in
reduced inventory due to a system that will manage
what you have and how much at all times. These
systems can be enhanced with inexpensive barcoding
scanning operations, magnetic door locks and is the
precursor to implementing an effective vending
solution.