Tin tức SPC

Summary of group discussions

23/06/2017 08:56






Cost savings Methods

·         Increase volume of scope.

·         Negotiation - Ex: hire a professional negotiator for big contracts..

·         Unit cost benchmarking:

·         Outsourcing:

·         TCO- Total Cost of Ownership :

·         Increasing supplier competition: Mở tender, bidding

·         Standardize , Re design to cost.

·         Process automation: vd: e-tender/bidding

·         Operational optimization: Ex: Discuss with supply chain, find opportunities to optimize operations.

·         Reduce inventory: ex: VMI – Vendor-managed inventory

·         Cash improvement for example:

o   credit extend (improve payment term)

o   Value improvement (Ex: revenue from spare parts disposal,...)

·         Supply Agreement: Rebate

·         Increase volume of scope

·         Standard price lists & sourcing new suppliers

·         Identify standard cost

·         Tìm nhiều NCC/ Increase supplier competition

·         Reduce Breakdown cost

·         Improving Relationship with suppliers

Cost Saving Measurements

·         (Last  year price – current price) x volume

·         (Budget price ( based on market intelligence)– current price) x volume

·         Budge price/ actual price

·         New items :

o   (average bid price – contract price.) x volume.

o   Cheapest price bid in the 1st round – ordered price

·         Plausible price (giá có vẻ hợp lý- sử dụng phương pháp tách giá, open book, offering scheme- so sánh giá dịch vụ phức tạp) - ordered price

·         Composite price (cân nhắc giá hơp lý, giá tốt nhất ngoài thị trường)– ordered price

·         ( price this year- price last year)/old price

·         Fix saving amount per year: For example: 80,000$ per year for cost saving


·         % Cost saving = (Budget - Price)/Budget; Tùy thời điểm

·         Compare with last year price



·         Business strategy (confidential to purchasers…)

·         Rule 80/20

·         Internal process is not clear.

·         Collaboration with operation team/finance team; Internal conflict (Sales forecast,  Finance, End user , Management,… )

·         Market intelligence / market risk:

o   Risk market increase more than estimation (Raw material  price increasing.)

·         Competence + capability negotiation skill of purchasing team:

o   Purchase qualification.( scope of work,  market knowledge )

·         Lack of Support from management

·         Actual business demand cannot increase to the minimum volume for better contract with suppliers

·         Not much support from purchasers of other subsidiaries

·         Lack of database: Market; Product;

·         Market price increasing

·         Lack of historical data, market intelligence

·         Suppliers reject to give Quotation

·         Abilities of purchaser


Suggestions to overcome challenges

·         Benchmark 3 years latest historical and estimate

·         Planning tools annually from internal

·         Internal collaboration, internal stake-holder engagement (Understand others function + involve stake holder on board)

·         Right person/ right sources

·         Training

·         Standardize process.

·         Decentralized person (insurance, real estate,…)  (expert)

·         Learning from supplier + learning from sale + learning from supply chain network + market analysis + industry analysis + supplier relationship

·         Learning Purchasing skill from CBAM

·         Involve purchasing strategy as a part of business strategy

·         Convince other subsidiaries within the group to use the same suppliers

·         Long-term contract with suppliers

·         Stable order within quantity commitment

·         Use software; setup database;

·         Tạo Thư viện Price list

·         Evaluate suppliers: Technical and Commercial

·         SPC group

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