.
  • ABC ANALYSIS

All items can be categories into following categories

A CLASS : FAST MOVING ,HIGH VOLUME OR  HIGH VALUE ITEMS


B CLASS :  AVERAGE MOVING AND LOW VALUE ITEMS


C CLASS : LOW MOVING  AND VERY LOW VALUE

These classification helps in  controlling  inventory cost . Major attention should be on  A CLASS
category items .

  • SERVICES

All organizations  has certain  services   to be performed  for smooth functioning  of unit eg Hygiene ,
security , maintenance, safety & pest control  , plumbing  and building  repair ,which can't be wished
away  and add cost to
operations .

In earlier days of factory operations these activities were carried  by companies own employees ,but as
we become aware of core competencies these jobs had been outsourced which has resulted into  
substantial savings .

Service contracts can be negotiated with these contractors  it could be job to job basis or annual rate
contracts .


LOGISTICS        


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COST REDUCTION IDEAS  - PROCUREMENT