Hello from a very blustery and autumnal Pentagon HQ as we start to tackle the mammoth task of improving the purchasing of our Thermoplastics!!!
We have touched on the subject of raising our business profile before and feel that it is important to re-visit the subject. The change in perception of our business is evident in many ways but significantly with the number of new and existing material suppliers who have been contacting us and wanting to come and personally introduce themselves to us.
The material end of the business was previously headed up by one of our Directors who retired earlier this year and since his departure this task has been distributed amongst other team members. This has presented us with an excellent opportunity to re-evaluate both what materials we are purchasing and who we are purchasing them from. It soon became evident that we are rather scattered in our approach to ordering materials and also the problem of over ordering therefore having valuable storage space used up unnecessarily.
We have now had the pleasure of meeting a vast number of material suppliers who are looking to gain and maintain business from us in the future. This has lead to the decision that in the New Year we will be undertaking the mammoth task of a ‘Material Pricing Exercise’ with a large number of suppliers. This is to ensure that we are buying the materials that we use at the right price and look to build new mutually beneficial relationships with a smaller number of suppliers with a view to reducing cost of sales and improving service.
As well as price another key element of deciding which suppliers we wish to work with moving forward will be whether they can offer ‘Call Off’ ordering…… With all the time, effort and equity put in to the factory renovations it is imperative moving forward that we avoid holding material in bulk which takes up valuable space in our premises. By placing larger ‘call off’ orders we hope to obtain a better price for material and sleep easy in the knowledge that we have the materials available to call in as they are required.
The Materials Pricing exercise is planned to take place in the first quarter of next year and given the wide and varied ranges of materials used by our customers this is going to be a fairly labour intensive task. However we are confident that the benefits will make the task worthwhile……
Projects like this are vital to our business to ensure that we manage the cost of sales to maintain profitability.
Never stop looking for ways to improve there is always something that could be done better!
From all the team here, have a lovely weekend.