These can be achieved through a joint effort between the supplier, OEM and customer by realizing mutual savings within their existing process. For example, the customer can fund equipment for the manufacturer to streamline manufacturing, maybe a specific machine that assists with optimizing the assembly process. When the supplier can be more efficient in diminishing labor and overhead costs to achieve savings with support from the customer, cost savings can be passed on to the client for a greater ROI overtime. Essentially, a strategic capital investment can reduce the total cost of ownership of the product being sold.
Previously in the Continuous Cost Reduction segment for Source One's Countdown to ISM2017 series, Source One Consultant Ken Ballard explained how to achieve transparency and leverage economies of scale. Utilizing both of these methods can help your organization earn additional savings without changing supplier or sacrificing quality, and Ballard explains in this next episode how streamlining manufacturing also offers similar opportunities. The Source One Countdown to ISM2017 series offers insights from procurement and supply chain professionals as we look forward to the Institute of Supply Management's annual conference next month. ISM2017 welcomes supply chain professionals from around the world to join together for four days in beautiful Orlando, Florida to collaborate, learn, and advance as experts in the industry. ISM2017 also features sub-conference ExecIn, exclusively hosted by Source One. ExecIn welcomes decision making, high level procurement professionals that attend ISM2017 with their teams to attend sessions designed for these executives that act as decision makers in their enterprises.