Semuga Allah mencucuri rahmat ke atas penghulu kami Nabi Muhammad S.A.W dan ke atas keluarga serta sahabat2 sekelian dengan bilangan sejumlah makhluk-NYA, kebaikan Arasy-NYA dan tinta kalimat-NYA.
Ya-Allah aku menghadiahkan semua perkongsian keilmuan ini kepada Almarhumah isteriku sayang Zauaurah Binti Apipah.

Kepada tuan/puan yang menjengok blog saya ini, dan nak mengamalkan apa yang telah saya kongsikan, mohon jasabaik hadiahkan Al-Fatihah kepada Almarhumah isteri saya.
JazakAllahu khairan katsira

Tuesday, January 5, 2010

Purchasing

Purchasing Cost Management.
  • Cost control is a critical aspect of the management of a company.
  • Cost control is the entire system by which costs are managed, contained, and documented and consists of the defined framework surrounding procurement, i.e. planning (both procurement planning and budgeting), regular price surveys, competitive contract awards, procurement tracking, program reviews, and audits.
  • Purchasing can employ a number of methods to reduce administrative costs, purchase prices and inventory carrying costs. Prevalent methods are:

    1. Cost -Reduction programs
    2. Price change management programs
    3. Volume leverage contracts
    4. Systems contracts n stockless purchasing
    5. Managing supplier relationship.

Cost- Reduction Programs.

1. Supplier development
2. Development of competition
3. Supplier cost reduction
4. Early Supplier Involvement (ESI)
5. Material substitution
6. Standardisation
7. Make/buy/lease analysis
8. Value analysis
9. Yield improvement/scrap reduction
10. Change in tolerances
11. Review to improve payment terms/conditions
12. Volume buying process changes
  • Cost reduction occurs when firm is paying a lower price .
  • Cost avoidance is the amount that would have been paid less the amount actually paid.