The Bendigo Manufacturing Group (BMG) recently held a Procurement Strategies Group forum aimed to make purchasing practices cheaper for the local manufacturing sector. More than 40 representatives from the manufacturing sector came together to investigate opportunities to improve their business’s bottom line.
Supported by the City of Greater Bendigo and Industry Capability Network (Victoria) Limited, the forum found that local businesses were willing to work together to reduce the cost of doing business.
Research conducted by La Trobe University for BMG and City of Greater Bendigo identified significant expenditure occurred on products and services imported into the region, as well as a range of potential value adding opportunities.
“With companies working more closely, they can explore ideas to realise the savings within their operations,” said Council’s Industry Development Officer, Jeff Bothe.
He said that small companies do not get the benefits of a large company when ordering large quantities, such as fleet purchasing.
“The same applies for shrink wrap,” he said. “By ordering by the semi trailer load rather than a truck load we will be able to gain much larger discounts.”
Presenters at the forum included Matthew Nichol from La Trobe University, Derrick Herbert from Industry Capability Network, Ken Sheldon from Nylex and David Bartholomew from Empire Rubber.
The forum recommended establishing a ‘Manufacturing Procurement Strategies Group’ to develop options identified.
“Manufacturers will be encouraged to register on a database, where they can update their individual data, services and products,” Jeff Bothe said. “They will also have the opportunity to take part in an industry visitation program where local businesses can visit others in the area to identify local business opportunities.”
BMG and the City of Greater Bendigo will distribute information from the forum to all manufacturers and a follow up meeting is planned for purchasing officers.
For further information, contact Jeff Bothe on (03) 5434 6197.
