When analyzing costs of goods and process, it is important to understand the different strategies involved in these decisions. There are two key strategies to consider when it comes to your supply management decision making process. These are proactive and reactive strategies.
A reactive strategy involves analyzing short term needs and restocking as inventory levels dwindle. The proactive supply management strategy is more analytical and considers all aspects of costs including; shipping costs, forecasts, usage and efficiency. A reactive approach allows the most flexibility while a proactive approach requires more organization and planning.
One of the ways to implement a proactive strategy is to look at the areas previously mentioned for opportunities to reduce costs. For example, every shipment received by your business has a cost associated with it. By understanding your needs and pre-planning, you can consolidate these shipments and easily reduce hidden costs affecting your bottom line.
There are other benefits to consolidating your supplies. Having a supplier that works as your sole liaison can provide you support needed so you can focus on other areas of your business, such as customer service and less on the sourcing aspect. Whether it is delivering an order on time for a rush job, establishing monthly re-order trends or performing a consumables analysis; Optisource strives to support each of its TSO locations with the daily challenges faced with supply and demand. Our goal is to work with each of the department managers in a practice and help coordinate their supply needs to reduce overall costs within the office. This consultative approach to supply management will not only help your practice uncover the opportunities for reducing cost of goods but is also key in improving efficiency.