#Immediacy on speech making

Price is not the only consideration, of course; quality also matters. But ...

Price is not the only consideration, of course; quality also matters. But quality is not always easy to assess in the way it affects you. Where the yield of final output is directly related to quality of input, as for example in a chemical feedstock, you may be able to calculate a financial relationship.

In many cases it is not so simple and you must try to find a link similar to the following examples: • percentage of rejects in final product; • wear on equipment; • customer complaints; • reduced production rate; • less pleasant working conditions.

Buying a higher-quality material is not the only way of increasing the yield of final product. In some cases, the yield can be increased by changing process conditions, using different equipment, or employing more skilled staff. This reduces the supplies you need to buy for a given output.

In the example calculated above, it appeared that quite a significant reduction in price might be achieved by buying in larger quantities. There are other costs, however, which must be offset against the discount. First, you may have to install additional facilities for the handling and storage of larger quantities. This in turns will be affected by the mode of delivery.

Will the larger quantities be delivered in bulk vehicles instead of bags or drums; on pallets instead of in cartons? Second, even if you don't need more facilities, you will certainly need more space.

Have you got it? Paying out larger sums at less-frequent intervals will cause bigger fluctuations in cash flow. The effect of this on interest has been allowed for in the discount calculations, but can you tolerate the bigger payments? The bigger deliveries will affect not only your cash flow; you will also have to increase your insurance cover.

So before you make a final decision on bulk buying you should ...

So before you make a final decision on bulk buying you should check the financial and operational implications discussed above. Storage Depending on the nature of your busin... read more

Inside buildings it is better to have a lock-fast, caged area rather ...

Inside buildings it is better to have a lock-fast, caged area rather than a closed room.

If this can be within sight of your desk or office, this is much the b... read more

We may be quite confident of our expected use of the equipment ...

We may be quite confident of our expected use of the equipment in the first year or two, but what then? We may have no use at all for the machine in 3 or 4 years' tim