If Procurement dares to go all the way, they may become a key factor in the competitiveness of a company. They may be able to improve the bottom line and eliminate some of the pressure on the business
A TCO approach to your sourcing setup will optimise purchasing and logistics, reduce administration, consumption in general, and the tied up inventory capital. The key is to look at the entire setup at once and create better transparency, more flexibility and better control of the total costs, thereby, strengthening the company’s competitive position.
Read here how you can get started with your TCO improvements today.
Without Solar as our partner we would have to get at least one extra full-time employee to handle our purchasing, which would be more complicated and probably less reliable.ANDERS LIEBST, GROUP PURCHASING MANAGER AT NILPETER
A TCO approach can free up resources, which would otherwise be tied up in inventory.
Better control can cut unnecessary consumption of materials.
Consistency of supply
Transparency will ensure that your sourcing partner can guarantee that you have the products when you need them.
Spend less time on ordering, invoicing and handling.
A TCO approach will ensure that you take all costs in connection with purchasing and consumption into consideration when taking steps to bring down total costs. This may involve e.g. streamlining of administrative processes, changes to the logistics setup and consolidation of suppliers with a view to ensuring sharp purchase prices on the most important products.
If you have not worked with TCO before you should start by implementing simple solutions and then increase your efforts as you gain more transparency.
Solar has developed solutions and services based on a TCO mind set for 30 years. Contact your Account Manager or Senior Vice President Ole Sørensen for more information.