Controlling Procurement Costs in Inflationary Conditions

Abstract

The most significant element in manufacturing costs is materials. To be more precise, manufacturing companies, on average, dispose of more than half the money they receive from sales in purchasing materials, components and services. As one measure of comparison, labour costs represent something over 20 per cent, less than half the proportion attributable to materials. Thus, despite the considerable irritant of fast‐rising wages, at the level of the manufacturing company, materials loomed largest as the most significant contributor to inflation during the period 1973–4.

Citation

Farmer, D. (1981), "Controlling Procurement Costs in Inflationary Conditions", International Journal of Physical Distribution & Materials Management, Vol. 11 No. 2/3, pp. 84-98. https://doi.org/10.1108/eb014495