A value chain analysis provides insight to value analyze products to reduce costs and improve quality. Looking for ways to improve efficiency is one of the many roles a purchasing agent takes on. Working alongside suppliers it is possible to find ways to reduce costs and improve quality. Implementing value analysis programs in a company contributes to continuous innovation and improvements, which maintains their competitive edge.
As a manager, you are actively looking for possible improvements in your processes, whether that is on the assembly line or the purchasing processes. To reduce costs, a company can look into adopting the Just in Time (JIT) inventory processes. This can help minimize inventory costs throughout the entire supply chain by eliminating excessive operating costs and reducing the total cost of ownership (El Dabee, 2012). JIT processes aim to eliminate all the waste, which is defined as anything that does not add any value to the end product (El Dabee, 2012). This could be achieved by establishing long-term relationships with trusted suppliers to maintain regular shipments. Ordering full container loads to minimize the transportation costs can provide a competitive edge in the globally
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Decreasing the number of suppliers can contribute to lowering costs and increasing quality. Evaluating your suppliers and working in collaboration with the top suppliers can result in mutual benefits (Nyaga, 2011). Looking for ways to standardize the products will cut costs and improve quality as suppliers can invest more resources to fewer variations. Working in collaboration with suppliers will promote the sharing of information to improve quality. This can be by being updated with the latest market trends and the availability of new technology (Nyaga, 2011). Sustainable competitive advantage can result from quality relationships within the supply chain (Nyaga,