When procuring circuit breakers, the lowest unit price is not the only way to lower procurement costs.
The costs involved in circuit breaker procurement are not limited to the product price. Packaging, transportation, inventory and product replacement also generate expenses.
Low-priced products can lower the unit purchase price, but buyers still need to confirm whether the product meets actual usage requirements and the requirements of the target market.
Buyers can reduce costs by cutting unnecessary expenses in the procurement process. This method does not require buyers to choose only lower-priced circuit breakers.
1. First Determine Actual Product Requirements
Before requesting quotes, buyers should first determine the specifications of the required circuit breakers.
Buyers can confirm the following information:
- AC or DC
- Voltaje nominal
- Corriente nominal
- Número de polos
- Short-circuit breaking capacity
- Required certificates or documents
- Procurement quantity
Buyers should determine these requirements based on the actual application.
For example, when a buyer needs a disyuntor de CC, the buyer should not substitute an AC product just because the AC circuit breaker is cheaper.
The same applies to MCBs and MCCBs. The two product types have different structures and application ranges.
2. Reduce Unnecessary Circuit Breaker Models
Circuit breakers exist in many models. The more product models there are, the more complex inventory management becomes.
Distributors can count the demand for different models based on historical sales data. Models with stable sales can enter the regular procurement plan. Models with no demand or low demand over a long period can be purchased according to actual orders.
This method can reduce the inventory occupied by slow-moving products.
3. Balance Procurement Quantity and Inventory
Procurement quantity should maintain a reasonable relationship with actual demand.
Manufacturers provide different quotes based on different procurement quantities. Companies can compare the price differences and inventory changes corresponding to different quantities.
For example, the procurement team can review the following information:
- Actual monthly usage
- Current inventory quantity
- Demand time for the next batch of projects
- Manufacturer production cycle
- Inventory increase from new orders
This data can help companies determine a more suitable order quantity.
4. Confirm Product Information Before Ordering
Once an international order enters the production stage, changes in product information will increase additional costs.
The procurement team should confirm the product model, parameters, quantity, packaging, and labeling requirements before production. When product drawings or technical documents involve special configurations, these should also be confirmed in advance.
The clearer the order information, the lower the possibility of subsequent modifications.
If an order contains errors, the actual handling method depends on the production progress and the supplier’s production schedule. Compared with modifying an order after production is completed, confirming information in advance makes cost control easier.
This step is especially applicable to customized products and bulk orders.
5. Compare Different Quotes Using Total Cost
Companies can break down circuit breaker procurement costs into several main parts:
Total procurement cost = Product cost + Packaging cost + Transportation cost + Customization cost + Other directly related costs
The cost items of different orders are not exactly the same.
Companies can choose the items that need to be calculated based on actual conditions.
For example, a company can compare two procurement plans:
Plan A: Lower unit price, but larger procurement quantity.
Plan B: Higher unit price, but smaller procurement quantity.
Plan A needs to consider additional inventory.
Plan B needs to consider a higher unit price and more procurement batches.
Actual procurement data can help companies judge which plan’s total expenditure better matches demand.
Therefore, price comparison should expand from “how much per unit” to “how much the entire order costs.”
6. Do Daily Maintenance Well to Extend Service Life
After low voltage circuit breakers are installed, companies need to inspect and maintain them regularly.
Maintenance content includes checking whether wiring screws are loose after power is cut off, cleaning dust from the surface of circuit breakers, and checking whether products show abnormal signs such as heating or discoloration. After discovering abnormalities, companies should promptly check the cause and handle them.
Regular maintenance can help companies promptly discover abnormalities in circuit breakers and wiring parts, reducing additional repair and downtime costs caused by faults. The actual service life of circuit breakers is also affected by factors such as product quality, usage environment, and operating conditions. Companies should not wait until products fail before handling them. Instead, companies should discover problems in advance through regular inspections.
Conclusión
Lowering circuit breaker procurement costs does not equal buying the lowest-priced products.
Companies can reduce unnecessary expenses from aspects such as product specifications, procurement quantity, and inventory, and extend circuit breaker service life through regular maintenance.
The product unit price is still an important part of the procurement quote. However, the product unit price is only one part of the entire procurement cost.
When companies consider product, packaging, transportation, inventory, and subsequent handling costs at the same time, the procurement team can more clearly judge which steps have room for cost reduction.
