In the present scenario, the raw material cost has reached a new height and other running cost is not less as the inflation has reached all time high. Taking all these into consideration, alternative source, efficient and economical mode of procurement to beat the heat is inevitable.
The focus should be such that how to procure in most economical way. The few notes are been made as precautionary measure, as below -
- Use all effort to find alternative supplier across the border.
- Consider other cost like fuel, energy, etc. with alternative solution.
- Conserve energy, use automation to the optimum.
- Control inventory because the present market is fluctuating.
- Reduce down time of procurement(avoid shortages) and maintenance related down time. Because at the present scenario one can not afford to add on overhead cost.
- Plan and forecast the future so as to face the eventualities due to unpredictable market condition.
- Check misuses and reduce rejection. Proper audit and most importantly accountability should be assigned.