The low cost lure of Fasteners and Fixings. Is it worth it?

The low cost lure of Fasteners and Fixings, Is it worth it?

Simon Cox’s (Vice President for procurement EMEA at Anixter) recent article in the Fastener and Fixing Magazine regarding the risks involved in aiming for the low cost options in manufacture and buying of fastening and fixing products.

Simon highlights that whilst the UK and other markets are still in recession this is a time where cost is integral to the Fasteners and fixings Industry and that many buyers are focusing on the low cost options for production and trading to cut cost without affecting the margin of the products they sell.

Some of the costs saving actions taken by companies were sourcing manufacture overseas, buying in bulk and conserving on quality.

The question is, is it worth it?

The simple answer in Simon’s eyes is; No.

Simon feels the companies haven’t taken certain factors into consideration when making these moves. These factors include Shipping and lag time, oil pricing, damages to margin, loss of integrity and increases in borrowing to cover costs of buying in bulk.

What role can technology play here?

Implementing the right IT system can have a dramatic impact for companies: increasing sales by optimising your customers buying options, signalling up-selling opportunities for your staff, streamlining ordering and selling products online – resulting in reduced costs and a boost in profits.

These improvements leave a business with more money to keep their buying strategies in check.

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