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Old November 13th 03, 10:58 PM
N2EY
 
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"KØHB" wrote in message thlink.net...
N2EY wrote:

Thanks for a complete and concise answer, Hans. And for showing that
it's not just the bottom line that drives business decisions.


Ah, but I think you missed the best part of the whole message, Jim.


I didn't miss it, but perhaps I wasn't clear about my appreciation of
it. I wrote about how those policies were all "price" policies because
they worked to reduce the true cost of things bought. (If you have to
spend a nickel to inspect every 10 cent widget you buy, it's actually
cheaper to buy a 12 cent widget that doesn't need incoming
inspection). Etc.

Every
action I described has a tendency to reduce my overall cost of goods sold,
either in reducing fixed factory costs, in reduced variable costs, in
higher inventory turns, in shorter manufacturing cycles, in better cash
flow, or in reduced headcount. All of that DOES drop directly to my bottom
line.


Not every action! The ethical concerns you mentioned would tend to
raise it, if:

1) you spend money to check out suppliers
2) you would refuse a lower priced supplier on ethical grounds alone -
even if the supplier wasn't breaking any laws.
3) you spend more money to buy from local and minority/woman owned
companies, etc.

Of course all three can be looked upon as long-term investments that
will ultimately benefit the bottom line 'someday'. Much better than
taking a short-term view that ultimately winds up costing more in the
long term.

And I agree with all those actions 100%.

73 de Jim, N2EY