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Safety Articles

Article # 12500

Safety Q & A

Q: How can Magid demonstrate on-going cost improvement after being awarded our business?

A: In reality, most purchasing programs are very sophisticated, and over time, unit prices are reduced to a very low, competitive level. The opportunity that now exists is to reduce the overall cost associated with purchasing PPE products. For example, the true cost to the customer of buying a single dispenser of disposable respirators on a single purchase order (P.O.) is astronomical when compared to the total cost associated with the purchase. For example, the product costs $15 for a dispenser of 12 ($1 .25 ea.), and the cost of the P.O. is approximately $100 for a total of $115 for the order, which bumps the unit cost to $9 .58! The single most effective approach to reducing costs on an on-going basis is a supply program like the Magid ZIIP program (see "Safety in Numbers – The Economy of the Single-Source Solution").