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1. Quality of the product
2. stocking and item forecasting will be efficient
3. Customer satisfaction
1- Reduction of purchase cost and improve profit
2-Reduce inventory
3-Reduce Transportation cost
One of the important objectives of the purchasing organization is the rationalization and standardization of material and components. This is particularly important for large multinational, multi-locational companies. It is not unusual for different divisions of a company buying a component from the same supplier at different prices ! Firms have therefore undertaken projects to standardize materials and reduce the number of vendors as part of their strategic supplier initiatives. These projects have provided significant results in reduction of purchase costs and improved profits.
Customer satisfaction
Cost Cutting
Quality of service
Material standardisation has advantages:
1) electronic components purchases could be negotiated for bulk buying2) electronic purchases may be purchased with specialist moulding, tooling and set up costs being shared with other consumers.3) standardised electronic components are more readily available, with shorter lead in lag times, as not a special order
