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Advantages of Centralized Buying System

Posted by Crown Battery on Feb 9, 2017 10:29:14 AM

Company expansions often mean multiple locations and divisions with varied supply needs for each. Add a business acquisition to the equation, and now you have multiple purchasing departments that may or may not be working in tandem. For any organization, large or small, duplication of efforts or roles means added expense. How can your company avoid this?

Centralize your Purchasing System

Developing a centralized buying system means that all areas of a business funnel, purchase through one common point. Centralization presents an opportunity to reduce material handling costs at a variety of levels. For example, it can increase purchasing power and lower product costs. However, centralization during a businesses expansion or consolidation also presents opportunity for planning and purchasing inputs to be optimize for a smoother process.

Add an ally, like Crown Battery, to the mix to help you set up the structure, and the benefits can be compounded. When multiple locations are acquiring batteries and chargers for equipment, it costs a company more when efforts are duplicated. But, we’re getting ahead of ourselves. Let’s review the key advantages of a centralized purchasing system before we discuss how Crown can help.

Reduced overhead

By having a single point of purchasing for your battery and charger needs, a company eliminates duplicated efforts. Staff have a complete knowledge of what each location needs, which increases efficiencies and reduces internal process friction. Crown Battery is a tentacle of your organization that keeps the pulse of each facility's current and future needs in mind. Further, staff can focus on minimizing costs instead of spending time on routine inventory management or one-off purchases.

Reduced cost

When an organization can make purchases in bulk over individual components, they save operation costs with greater discounts. The discounts extend beyond component costs with shipping and handling of repeated smaller shipments. Crown Battery is skilled in the identification of asset utility during consolidation and in making recommendation for proper equipment to meet operational needs.

Reduced effort

Most companies employ the efforts of inventory management systems which have become a huge gain, but with a decentralized purchasing system, there is still additional energy needed in multiple inventory records, multiple points of contact, and various relationships to maintain with suppliers. With a single purchasing system, simplified documents, reduced contacts, and stronger relationships are gained. Crown Battery can be a perfect partner in helping you set this up.

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Tags: Battery Cost, Crown Battery corporation