Three ideas for cutting costs in your supply chain

This is no time to knock down the quality of your product in a
panicky bid to increase margins. Instead, start looking for cost
saving by taking a bit of time out from the day to day to work
through the ideas below, and unearth new savings in your supply
chain. Sorted!

Try BizCrowd
to find better supplier deals

If you’re evaluating your supply chain, you need to evaluate
your suppliers. Shopping around regularly is a cornerstone of
competitiveness, and makes sure you’re always getting the best deal
– whether that’s through choosing a new supplier, or going back to
your existing one equipped with data on market rates to negotiate a
better deal.

So where do you find news suppliers? BizCrowd
is a brilliant new free platform that connects you with suppliers.
You post what you’re looking for, for free, then receive responses
from businesses on what they can offer and at what price. The
businesses that bid are rated by the BizCrowd community, so you can
pick the ones who have been verified as most reliable.

Getting a better supplier deal doesn’t always mean going for the
cheapest option. A supplier you can trust to always deliver on time
at the standard of quality you need, even if they are a bit more
expensive than a cheap competitor, could save you more money in the
long run than having to deal with delays and customer complaints.
Remember to model out different transportation costs if you’re
evaluating suppliers in different locations.

Pay your suppliers and transport companies earlier

It might seem counterintuitive to want to pay suppliers before
you have to, but bear with us for a moment. For most businesses, an
invoice paid early is a godsend because it’s such a great little
cashflow boost. So here’s your negotiation tactic: offer to pay
your suppliers and transport companies within half of two-thirds of
their usual payment terms in return for a small discount on the
price of the invoice.

What percentage discount should you get? That’s for you to
negotiate, but put the idea to them, then leave the floor open for
them to suggest how much they’d be willing to knock off the price
for you in return for early payment. You might just be surprised at
how much you can save. Even if it’s fractional, those small savings
really do add up over time.

Try to save up to 75% on transport costs

Feel like transport costs are constantly nibbling away at your
margins? Yup – they are. Cue Smarta 100 winner, which can knock up to
75% off your transport costs. You plug in to the website what you
need to move and where from and to, and then ships or lorries that
are making that journey anyway – but have enough free space left to
transport your goods – bid to transport for you.

Shiply boasts almost one million users and has 65,000 transport
providers on its books. It might not be right if you need the same
shipment made over the same journey every single week, but for
one-off shipments it’s definitely worth checking out.

via Small business advice from Smarta


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About cashflowkiller

Hi! I’m James and am passionate about my small businesses. A strong cashflow is vital for us so I will be curating the latest on cashflow and business news.

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