20 Small Issues Destroying Your Margin

COGS (Cost of Goods Sold) is not just a finance metric—it is a strategic lever for profitability, largely driven by Procurement. 1% improvement in COGS can increase profit by up to 5%-10%. #Procurement #COGS #CostOptimization #SupplyChain #StrategicSourcing #RMG #Manufacturing #Profitability #BusinessStrategy #BangladeshEconomy

Pricing has fundamentally changed. What was once relatively stable is now more dynamic, more volatile, and increasingly difficult to control. In many businesses, that volatility is still being managed reactively, through negotiation cycles and short-term interventions. But pricing is no longer behaving in a way that can be managed periodically. It needs to be managed structurally. That means greater visibility across the cost base, more disciplined supplier management, and commercial frameworks that can hold under changing conditions. Because while pricing may be volatile, cost management shouldn’t be. #CostManagement #Procurement #Procure4

“We’ll review it later.” 🙅 Later usually means: • when margins are tighter • when problems show up • when it’s more urgent (and stressful) Procurement is one of those things that rewards early attention. We suggest a review every 3-6 months depending on the scale you're operating at. #procurement #sourcing #business

Your 3PL should not be building your forecasting model. Let me say that again. They are not incentivized to optimize your cost. #3PL #Logistics #InventoryPlanning #SupplyChainOptimization #Fulfillment 👉 https://lnkd.in/gZ8hsKJe

#Procurement Let’s be real. “Saving money” in procurement isn’t just one thing. I used to think any cheaper deal was a win. Turns out there are 4 ways we actually impact cost, and only 1 shows up on the bill: *1. Cost Saving* = We spent less _today_. Like switching from air to sea freight and saving $120K. Feels good right away. *2. Cost Reduction* = We fixed the _system_ so it costs less forever. Like making packaging thinner without breaking the product. Win every month. *3. Cost Avoidance* = We stopped a problem _before_ it happened. Like locking a price before inflation hit. Nobody sees it, but we dodged a $120K bullet. *4. Cost Control* = We keep spend _in check_. Like approval workflows that cut rogue spending by 40%. Keeps the budget safe. The lesson? If we only chase “cheaper prices”, we miss 3 other ways to create value. Great teams use all 4. That’s how procurement becomes a business partner, not just a buyer. Which one do you focus on most right now? #SupplyChainLife #ProcurementTips #MoneySmart #Operations #BusinessBasics #WorkingSmarter #CostManagement #CareerGrowth #BehindTheScenes

How many packages does your logistics provider lose every year? You probably have a number. It shows up in reports, gets acknowledged, and then everyone moves on. 🚶➡️ Now the harder question: Who is financially responsible for those losses? If the answer is we need to check the contract, that’s already a warning sign. In many 3PL setups, responsibility for lost goods is never clearly defined. Both sides assume the other is handling it. In reality, no one fully owns it. 🔴 And the liability clause most contracts rely on? It usually covers only a fraction of the actual value, often based on weight, not what the goods are really worth. I’ve seen plants where thousands of packages were reported lost every year. The contract didn’t prevent it. It made recovery almost impossible. Only when responsibility was clearly defined did the situation start to shift. Same 3PL. Same operation. But for the first time, losing goods had a real financial consequence. 💵 In one case, the recovery in the first year was higher than the losses from the previous three. That’s when you realise: It was never just an operational issue. Does your contract make that responsibility clear? 👇 #SupplyChainManagement #LogisticsOperations #3PL #CostControl #ManufacturingOperations

You don’t need a transformation programme to save money. You need focus. ▪️Consolidate suppliers ▪️Renegotiate properly ▪️Fix broken processes Quick wins are everywhere. Most businesses just haven’t looked properly. Link to the full article is in the first comment. Worth a read if margins are under pressure. 👇 #QuickWins #Procurement #CostSavings #BusinessEfficiency #StrategicSourcing #OperationalImprovement #SupplyChain #CommercialFocus

PART 8 - The 1.5-Month Rule (And Why I Reduce It) Theory says: procure for 1.5 months. Practice says: reduce by 10-20% before sending schedules to vendors. Why? Budget constraints. Store capacity. Reality. I plan ideal. I execute practical. This took me months to learn. #Procurement #SupplyChain #RealityCheck #BuyerLife

Cost management is no longer just about securing the lowest possible price. Recent years have shown that the cheapest option is not always the most sustainable one. When supply chains fail, lead times slip, and disruptions impact operations, the costs often outweigh the initial savings. Cost still matters. But increasingly, it’s being balanced alongside reliability, resilience, and long-term operational performance. #Procurement #Resilience #SupplyChain #CostManagement #Procure4

𝗦𝘂𝗽𝗽𝗹𝘆 𝗖𝗵𝗮𝗶𝗻 𝗶𝘀 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗶𝗻 𝗠𝗼𝘁𝗶𝗼𝗻 A supply chain disruption is never just an operational headache—it is a financial risk. Delayed procurement impacts production flow, excess inventory traps cash, and poor forecasting distorts corporate budgeting. Conversely, purely finance-driven decisions made in a vacuum often backfire. Slashing costs can weaken supplier reliability, and overly aggressive inventory targets inevitably trigger stockouts. Sustainable scaling happens when Finance, Operations, and Supply Chain break down silos and establish shared visibility. True efficiency recognizes that cash flow moves through the supply chain long before it hits the financial statements. #SupplyChainStrategy #CorporateFinance #WorkingCapital #OperationsManagement #BusinessScalability #CrossFunctionalAlignment