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Title: Reducing Material Cost Through Standardization
Author: Christopher J. Glaeser,
Source: American Gas Association 1994
Year Published: 1994
Abstract: We are constantly striving for new methods to reduce expenditures in all areas of our operations. Material cost is a major part of the expense involved with operating and installing gas distribution facilities. Through standardization, material cost can be reduced in an efficient and productive manner. Standards Committees provide an excellent means of creating, reviewing and approving standards within a company. Once the standards are approved, the purchasing department can solicit bids from manufacturers. Additional savings can be realized by working in partnership with other gas distribution companies. Partnership bidding of materials can provide additional savings to all participating companies. Entex has reorganized its Standards Committee and initiated methods to reduce its inactive inventory. We also have entered into a joint partnership with two other gas distribution companies to jointly bid materials. This paper presents a case study of methods used by Entex over the past three years to reduce material cost.

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