---
id: how-can-i-optimise-procurement-and-reduce-lead-times
title: "How can I optimise procurement and reduce lead times?"
category: guide
subtopic: procurement-strategy
page_type: guide
source_url: "https://neosbyargonandco.com/fmcg-inventory-optimisation"
tags: ["procurement", "supplier management", "batch sizing", "manufacturing"]
questions:
  - "How do I reduce procurement costs?"
  - "Should I order larger quantities for discounts?"
  - "What's Vendor-Managed Inventory?"
  - "How do lead times affect inventory?"
related: [network-optimisation, manufacturing-optimisation]
---

From procurement, adopt a total cost of ownership (TCO) view. Supplier price breaks for larger quantities can actually increase carrying costs and obsolescence risk-weigh all costs, not just unit price.

Vendor-Managed Inventory (VMI) agreements, where suppliers hold stock on your behalf, can help but require careful management, especially with binding forecasts. Reducing lead times is crucial: longer lead times mean you must hold more inventory to manage risk.

Shorten lead times through improved supplier relationships and streamlined logistics. Argon & Co helps FMCG businesses evaluate procurement strategies and supplier partnerships that lower overall inventory costs. Get in touch to explore how we can optimise your procurement approach.