by Jon Schreibfeder | Aug 15, 2017 | Purchasing
A vendor’s quoted price of an item is commonly referred to as the “replacement cost”. Many organizations make the mistake of basing their purchasing decisions and profitability analysis on this amount. But, in many cases, other costs are incurred when buying a...
by Jon Schreibfeder | Jun 17, 2016 | Purchasing
Often vendors offer a bigger discount or other considerations for placing a larger order. It is tempting to always increase the size of a replenishment order to “get the extra five percent discount” or “qualify for free freight”. Sure, buying at a lower unit cost...
by Jon Schreibfeder | Jan 15, 2013 | Purchasing
One of our clients is continually overstocked. Management is frustrated that they are not achieving their return on investment goals. They couldn’t understand why, after working hard to establish replenishment parameters that would optimize their inventory...
by Jon Schreibfeder | Sep 19, 2012 | Purchasing
In today’s economy we see many companies emphasizing “cash flow management” over profitability. That is, they are willing to sacrifice some profit dollars in order to invest smaller amounts in inventory. If you find yourself in this situation, I have...
by Jon Schreibfeder | Sep 19, 2012 | Purchasing
Many vendors offer larger discounts when you buy more of their products. But how do you know whether these offers are really good deals? This month we will show you a quick and easy way to decide whether or not to take advantage of a price break. In our example the...
by Jon Schreibfeder | Feb 1, 2012 | Purchasing
About this time last year I worked with two large distributors that allow their individual branches to completely control the replenishment of the products they stock. Each location’s management, buyers, and/or salespeople could replenish stock whenever they...
