My company tried to reduce ordering / fright costs ew years back by combining similar items at both plantsites.

But only 8-10% items identified for combined ordering by one plant loaction.

I am now presenting a new idea to increase this percentage and need your valuable comments.

Current criteria: combine order only for exactly similar part no. items

My Criteria : Order all valves commonly, whether they have same part no or not. Since suppliers are same, so same category items to be procured in common order.

same holds good for v-belts, pipes and fittings, mechanical seals etc

My criteria-2: If we have two different models of GE or siemens machines and apparently no common items are there, they should also be commonly ordered as they have to be procured from same source(OEM).

Do you people agree with my criteria for common ordering?

How do people order spares for differnt locations of your company?

Regards

Yahoo,
Happy to provide input but am not sure that I understand your criteria.
For #1 are you saying that you would place all valves from the same supplier on the same order? If so I don't know why this wouldn't be done anyway. I guess that one issue is the timing at which things come up for reordering.

For #2 are you saying that although the parts are different they come from the same supplier so why not order them together? I would have the same comment as per above.

One of my clients uses a single purchasing office for two locations and this seems to work out fine.
The issues tend to relate to assigning the costs and signing off when things are costed to areas managed by different people. Plus getting split deliveries and the ability of the supplier to manage this. If the saving is large enough, in my opinion both of these issues can be managed.

I explain my points as below:

No.1: Currently we have identified items as common which are exactly same. Only these items are ordered from the main location (held responsible for combined ordering. That is if a bar stock of AISI-1022 in 150mm diameter is coded in both location catalgoues, then it would be combined ordered.
But if it is 150mm at one location and 70mm at other location, it would be ordered separately.

Similarly, if a gate valve 20 inch size is coded at one location and 16 inch at other location, these are ordered separately.

My idea is that all such items should be ordered commmonly.

No.2: We have General Electric Machine of model-A at one location but model B at other location. Then both loactions maintenance people are not comfortable if ordered by one common location.

They think each location is technically suitable to order its machine spares though they come from the same vendor.


Hope I have given a bit clarity? Please do give your valuable comment.

Yahoo,
Apologies for not getting back - I am not sure what happened.
Anyway, you have hit upon the key issue - that is culture. Your comment that 'both locations are not comfortable if ordered by one common location' tells us that the issue isn't about capacity or capability but individual comfort.
So you need to understand their objections (my guess is that it is to do with a belief that the other location won't look after them as well as they look after themselves). If this is the case then adress this with a mechanism to ensure that everyone is looked after.
For many people they need to see that the system works and you can only do this by actually implementing. Are there examples that you can point to where this already works?

Regards,,

Yahoo, you can order them commonly or together especially if the same supplier can supply both items. So you will have one purchase order with 2 items. Thus, less paperwork to handle.