se the best value supplies and services” (NPR, 1993, Attch 1). When we needed dial-up modems to upgrade our e-mail system we found that we could save nearly $25 dollars per unit by purchasing them through a mail order company versus normal supply channels. Not only was the cost lower, but delivery time was also reduced. The money saved by this and similar other projects are retained by us to buy things we need, but may not have been budgeted for.Actions like these permit us to make more cost-effective use of the resources we have. In other words, more bang for the buck.Unfortunately these polices only apply to purchases under $2,500, as a result we are unable to take full advantage of all the possible savings to be had if the programs applied to higher dollar amounts (NPR, 1993).Inventories:As a service workcenter, inventories in the BCTF are limited to small amounts of office material for day-to-day use and some replacement parts for communications equipment. We do not maintain permanent inventories of equipment for installation. When a requirement comes up we order what is needed, assemble it and install it as soon as possible. A very small amount may be held as work-in-progress awaiting the arrival of other parts to complete an assembly.The largest single thing that we consider to be inventory is the communication circuits themselves. Since they are leased they usually make up the most expensive part of a communications system. A standard long-haul communications circuit can cost between $500 and $10,000 per month depending on the data rate. Non-standard circuits can cost 50 to 100 percent more.With policies like fee-for-service, charges are or soon will be passed on to the customer. The BCTF however, will continue to be responsible for maintaining inventory control over all data circuits. Our best tool for accomplishing this is the Bi-annual review of leased circuits. During this review we check circuit billing to...
