In conclusion this study gave good and qualified reasons to reduce the purchasing lead time. The arguments brought forward in this study are useful when negotiating on shorter purchasing lead times with the suppliers. The buyers of ABB Oy, Drives can use this study as a guideline when negotiating with the suppliers. It makes it easier to negotiate on purchasing lead time reduction once accurate and concrete arguments in favor are provided.
The purchasing lead time reduction workshop was an effective way to start the actions to reduce the lead times with the potential suppliers. The workshop forced the buyers to
concentrate on the given tasks and develop effective ways to reduce the purchasing lead time. The action plans that were created in the workshop assure that the chosen actions for purchasing lead time reduction are completed.
The process proposal of vendor managed inventory is a good applicable process for ABB Oy, Drives. The process must be modified for each supplier separately and it works as a guideline for the vendor managed inventory process. The template of the agree- ment elements of vendor managed inventory is a good outline for the mutual agreement and the template can work also as a check list. The process proposal and the template of the agreement elements can be very useful for the buyers if setting up the vendor managed inventory model.
This chapter briefly introduces some further development ideas that arose while this study was conducted. First of all a presentation could be prepared that would include all the main advantages and reasons why the purchasing lead time should be reduced. A presentation that would be easy to share with the suppliers, and it could contribute to the negotiations of purchasing lead time reduction.
Secondly calculations of how much one lead time day would cost for ABB Oy, Drives should be made. In this way the effect of the purchasing lead time could be understood even better. Accurate calculation of the cost of one lead time day would help to compare whether it is more efficient to purchase materials from a supplier that is close or from Asia. When purchasing from Asian suppliers, the transportation costs might rise on a high level and it would take time to ship the goods from there to Finland. The calculations should take all the factors into account including the cost of one lead time day.
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