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Reduced Cost

 

Lower Administrative Costs


  • Less floor space
  • Lower inventory costs
  • Lower purchasing costs
  • More money available for other projects
LESS FLOOR SPACE

Most companies have a corporate cost as overhead costs for floor space, inventory and administrative costs.  Leasing rates per square foot for distribution and manufacturing run about $4.00 per square foot per month.

By consolidating products to the distributor or by using one type of product for more than one use saves space in a plant that can be used for other purposes.
 

LOWER INVENTORY COSTS

Bits and sockets are an excellent area in which to lower inventory costs.  The carrying cost on existing inventory is typically about 10% per year.  This is essentially the interest or lost cost on the money used to purchase the inventory.  Large companies spend huge amounts of money every year on certain commodity products.

(difference in value of lesser inventory) X 10% = yearly savings
 

LOWER PURCHASING COSTS

One of the primary reasons that a company utilizes an integrator is to lower their acquisition cost, or purchasing costs.  AIMCO has the broadest line of assembly tool products and accessories on the market today.  Instead of placing five or six purchase orders with a variety of suppliers just to complete the assembly line, a company can order the entire system from one single source, AIMCO.  Only one purchase order, one contact, one shipment, one computer system, one payment.  Let AIMCO "integrate the integrator".

Consider especially the multiple purchase product - bits, sockets and other accessories.  By consolidating vendors, one can save a tremendous amount of money every year.

It is considered an industry average that each purchase order costs $75 just to cover the costs of labor, administration and overhead to follow a purchase order through the process.
 

WHO IS INVOLVED WITH REDUCED COST?
  • Purchasing
  • Controller
  • Facilities Manager
  • Production Manager

 
 
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