HQLCP – High Quality Low Cost Purchasing

Review and Lowering of the General Plant Cost

Managing the main cost drivers and the sourcing of strategic raw materials is usually very well understood at the senior management level and receives the necessary attention. However, we often find that lesser items are not given focussed attention. A detailed analysis and the adoption of simple processes and procedures can improve such areas and can result in considerable savings.

We propose to review and improve the following areas:

  • sourcing of raw and packaging materials, supplier evaluation, assessment of purchasing department and their procedures,
  • outbound logistics (from plant to customer),
  • overall effectiveness of logistics resources (warehousing, forklifts, transport fleet),
  • waste management, recycling and environmental fees,
  • other outsourced services such as warehousing, maintenance, boiler plant management, security and janitorial services.

HQLCP projects comprise analysis and benchmarking of prices, terms and purcha- sing procedures. We estimate the savings potential and define implementation actions necessary to execute them. In the implementation phase we assist the Client to achieve the savings.