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Expert urges West Mids manufacturing sector to reduce costs by honing its purchasing techniques

Pictured above: Simon Griffiths, Chief Executive of MAS-WM

 

Controlling purchasing costs can help companies save money every year according to a leading industrial expert.

PEDA's Peter Hales has teamed up with the Manufacturing Advisory Service - West Midlands (MAS-WM) to put on a series of workshops designed to equip local firms with the tools they need to maximise their spend and get better value for money.

The next three sessions, which will be held at Stourbridge Rugby Club (19th Oct), Coventry and Warwickshire Chamber (20th Oct) and Cannock Cricket and Hockey Club (21st Oct), will give purchasing professionals techniques for managing their supply chain, optimising material spend and identifying innovative ways of buying services.

There will also be a focus on the acquisition of capital plant so that companies can free up cash within their business.

"Purchasing controls between 50-80% of all costs for most manufacturers so getting it right is vitally important," explained Peter Hales.

"It is the biggest opportunity to deliver 'bottom line' improvement, with just a 5% increase in performance equivalent to increasing sales turnover by 50% or more. These workshops will provide the knowledge to help firms maximise profitability by adopting good practices."

The sessions are completely free of charge to West Midlands SMEs and will be delivered by PEDA, who boast more than 50 years' combined experience in lean manufacturing.

In addition to core purchasing skills, delegates will receive a detailed insight into managing low-value purchases and embracing e-commerce, not to mention a guide to the 'pros and cons' of low cost sourcing.

Simon Griffiths, Chief Executive of MAS-WM, urged companies to consider taking part:

"When we go out and visit firms they tell us they all want to increases sales, yet very few have considered improving their purchasing methods in order to become more profitable.

"These workshops will provide advice and guidance on taking the initial steps and then manufacturers can access more in-depth and specialist advice by undertaking a business review from one of our specialist advisers."

He concluded: "Delegates that attend can also benefit from networking with like minded businesses and can use the seminar as an official part of their continued personal development."

MAS-WM, which  is a project part-funded by Advantage West Midlands and the European Regional Development Fund (ERDF), has assisted over 6000 companies to improve their products, productivity, process and people, adding over £250m to the turnovers of those firms. 

Future purchasing related seminars will take place in November and January, entitled 'Getting best value from purchasing' and "Selecting and evaluating suppliers.'

 

 

 

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Article published by Midlands Business News on 5 October, 2010

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