Whether you run a construction company or a bakery, keeping the overall costs down is your primary goal. At the same time, you will have to ensure you have the latest industrial hardware your business needs. This means you need to balance your business needs without sacrificing its performance. That’s easier said than done.
Keeping the purchase cost of industrial hardware is often an uphill struggle.
Let’s learn a few insights that will help you keep these costs down.
Prioritize Your Purchases
Buying industrial hardware is an expensive affair. Wire ropes alone would cost you thousands of dollars. So, when planning for upgrades, you should prioritize your needs. Take stock of your current hardware equipment and how you will benefit from your new investment. Create this list before getting in touch with your industrial hardware supplier.
You can take the following factors into account when prioritizing:
- Your processing/manufacturing/application needs.
- Your storage and maintenance options.
- Your budget.
- And the expectations of your customers.
Audit Your Inventory Regularly
Regular audit of your inventory is a necessity. It can help you:
- Determine if and when you need to buy new hardware.
- Understand if the current hardware setup is optimal for your business needs.
- Review standard procedures and operations related to the maintenance and operation of your equipment.
- Work out your monthly/quarterly/annual budget.
Have your experienced and qualified staff check your inventory periodically. This will make your warehouse less wasteful. You can do a monthly or quarterly audit, whichever best fits your needs. So, whenever the need arises, just call your industrial hardware supplier.
Ensure Proper Life-Cycle Management
This is also a critical step. Life cycle management refers to different stages of industrial hardware, such as procurement, usage, upgrade, and decommission. You can increase the life span of your industrial hardware by planning each stage of its life cycle.
You can achieve this by:
- Regular inspection
- Proactive repair and maintenance
- Timely replacement and upgrades
Discussing the life-cycle information with your industrial hardware distributor can help you better manage these efforts. Talk to your supplier about how you can maximize the lifespan of your hardware whenever you make a purchase.
Streamline Your Industrial Hardware Supplier Network
Streamlining your industrial hardware supplier network is probably the best way to reduce purchase costs. One way to do this is to reduce the number of suppliers/vendors. Like most businesses, you probably have multiple suppliers and vendors.
While this sounds great, it may not be cost-effective. Managing a long list of suppliers is often time-consuming and labor-intensive. It can increase your purchase costs in the long run. Instead, you can find one industrial hardware supplier that can provide a sufficiently broad range of products.
Bu reducing the number of industrial hardware distributors, you can reduce the number of orders and increase the number of lines per order. As a result, your management costs go down. Plus, you still have a reliable supply when you need it. That’s a win-win for everyone.
Don’t Be Afraid to Negotiate
Negotiations play a critical role in determining the purchase cost of your industrial hardware. But it’s often difficult to negotiate successfully. One of the most important qualities of a successful negotiation is being patient. The more you rush, the more likely you are to lose money. On the contrary, being patient will help you get the best deals from an impatient industrial hardware distributor.
Remember the following when negotiating with an industrial hardware supplier.
- Never be afraid to ask what you want but be polite.
- Keep it purely professional. Never let your personal emotions get in the way of your negotiations.
- Listen and react. You must learn to read between the lines before making your case.
- Gather as much information about the industrial hardware distributor and their products as possible before kicking off the negotiations.
- Be empathetic with the supplier. Focus on solving the problem and finding an agreement that best suits both parties.
Think About Partially Outsourcing Your Purchasing Process
As you may already know, industrial hardware purchase is a multi-step process. It often involves research, sourcing, negotiations, administrative follow-up, shipping, and delivery. There is no reason for you to handle every aspect of your purchase process if you have limited resources.
You can always hire a partner specializing in sourcing hardware. A reliable outsourcing partner can provide:
- Better purchase conditions
- Optimized purchase process
- More purchase options
- Enhanced risk management
- Lower processing/administrative costs
- Competitive advantage
But make sure you are aware of your needs before outsourcing or talking to an industrial hardware supplier. After all, you don’t want to be over-sold.
Keeping the cost of purchasing hardware is not as easy as it sounds. But it is necessary to run a profitable and successful business. Hopefully, these tried-and-tested tips will help you keep your purchase costs down without compromising performance. The sooner you implement these strategies, the better.
Author Bio: I am Randy Gonzales. I am the President of Elite Sales Inc, a rigging equipment and wire rope distribution company based in Miami, Tampa, Houston, and Dyer. I have more than 30 years of experience in the distribution and supply of industrial hardware industry.