How to ensure cost effectiveness for procurement?

Here in UAE labour and rent is cheap as compare to eurpeon country.

‎ month consumption based inventry.

proper house keeping and store bining.

coordinate with end user .

 

Through the issuance of tenders and periodic auctions and provide alternatives for spare parts necessary and frequent failures of the work of reserve balance in stores to reach the lowest prices with the provision of downtime resulting from the absence of spare parts and the need to buy timely and direct 

Cost effectiveness is main pillar in transportation, if you set life according to the instruction of OEM (Owner of Equipment Manual) for vehicle usage, then it will be cost effective for us. Moreover preventive maintenance is also a main pillar in cost effectiveness. 

Through proper research of online market.

The greatest misconception about cost management in procurement today is that price reductions equal cost savings. To help you make better informed sourcing decisions, this white paper reviews the danger of placing too much importance on unit costs and the benefits of working with a supplier who truly understands all the factors that influence the supply chain’s effectiveness and efficiency.

Because if the material storage is more, then it required very high cost and if the material storage is less, then the result is shortage of the production. So the procurement is very neccessary in the period of production to avoid delay in production and it should be at right cost and right quantity.