Beckman Coulter-JIT insights

By By Lance Dixon -- Purchasing, 2/22/2001

For this column, we would like to thank Aimar Damon, tactical procurement manager, Beckman Coulter Inc. Beckman Coulter is a leading provider of instrument systems that automate processes in clinical laboratories. The company currently has four JIT II on-site supplier relationships.

In a previous column I wrote about purchase price variance goals and how supply management departments are challenged each year to achieve greater savings than in prior years. For those of us who use electronic components for example, especially integrated circuits, our task is made all the more difficult in times of allocations when demand far outstrips supply and there is no room to negotiate lower prices to meet PPV objectives.

One strategy we have found to be successful is to have an electronics JIT II in-plant supplier on site, responsible for a broad range of different components, not just for semiconductors. The larger the breadth of part numbers, the greater the likelihood your JIT II supplier will be able to accept a reduced margin on a particular line of products as long as their gross profit numbers overall are acceptable. They can reduce their gross margin on one commodity to make up for higher prices in another. Let's face it, no company can stay in business by supplying products at a loss, but with a JIT II supplier with whom you have a long-term relationship and who understands the importance of the common goals of continued PPV performance, you are more likely to be successful.

JIT II is a service mark of BOSE Corporation. Concepts were conceived and implemented by Lance Dixon, executive director, JIT II Education & Research Center. To order JIT II video (26min.), send $295 (check or MO) to P URCHASING Magazine, P.O. Box 497, New Town Branch, Boston, Mass. 02158. For JIT II information, textbook, seminars, call (508) 766-7080 or write BOSE JIT II Education & Research Center, MS 4A1, The Mountain, Framingham, MA 01701.