Efficiency is a key aspect of controlling the cost of sales. In a competitive marketplace, the most efficient producer will have the advantage. Quality control and customer service must be assured while managing and controlling costs.
Negotiate the best possible payment terms with vendors and verify due dates on invoices to monitor compliance.
Communicate expectations to vendors and work with them to ensure quality control in the vendor’s place of business.
Send vendors forecast schedules of purchase needs in order to avoid backlogs and reduce delivery time.
Train personnel in the proper use of equipment and materials, to avoid damage and the cost of repairs or replacement.
Evaluate the quality of raw materials, product design, and the productive process, and make improvements where efficiencies can be gained or value can be added.
Optimize packaging based on what the customer values.
Charge transportation costs to the customer, if possible.
Optimize shipments – combine deliveries, schedule routes, and use available capacity.
Minimize urgent shipments by planning ahead and scheduling deliveries by the most cost-efficient means.