• A common request is for NET to provide alternative sourcing of key raw materials, essential in safeguarding against the havoc caused by such things as dramatic currency swings and agronomic factors such as unseasonal weather, natural disasters, political decisions, etc... which an international supply market will inflict on product costing structures.

 

• Ongoing supplies of single (or dual) sources raw materials are notorious for inefficiencies in costing. Supply monopoly or duopoly provide poor value for money in terms of product raw material cost to the producer.

 

• Resources allocated to existing product support always result in continuity of supply (and thus continuous production of brand) and pay for itself with considerable extra returns. It should take into account any changes in legislation affecting either the supply of raw materials or product composition, making management recommendations where relevant.

 

• From time to time, dictated either by the market or supply forces, major cost reduction exercises should be undertaken with the action standard in this, and all other cost control exercises, being equal or improved consumer acceptance as dictated by the customer in market research.