Regarding the efficiency of purchasing operations, have you ever felt, "I have a sense of the problem, but I don't know where to start!"? We've consolidated that into one! 【Efficiency of Purchasing Operations】

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Regarding the efficiency of purchasing operations, have you ever thought, "I have concerns, but I don't know where to start!"? This document will explore the effects of consolidating multiple suppliers into one, using examples to illustrate the benefits. You will see that the impact extends not only to the purchasing department but also to other departments and ultimately to the overall management of the company. There will be discussions about financial analysis along the way, but I have tried to present the information as clearly as possible. While various operations may seem disconnected, they are actually interconnected. I hope this serves as an opportunity to reconsider purchasing activities from various perspectives, and I would be grateful if those other than purchasing personnel, such as business owners, could take a look! 【Contents of this page】 1. Challenges in purchasing operations 2. Identifying hidden costs and risks 2-1. Costs associated with individual orders for each component 【Supplementary explanation】Reduction of interest burden through inventory reduction 【Supplementary explanation】Review of labor costs (converting fixed costs to variable costs) 2-2. Risks of having a single production site 2-3. Cost reduction (factors determining product cost) 3. Considerations when reviewing suppliers