Utilise good data There is a difference between collecting as much data as you can and basing your decisions on high-quality supply chain data. For a complex supply chain that involves product development, engineering, packaging, delivery, sales, forecasting and more, using your data correctly creates insights that drive revenue and increase efficiency. You will find this difficult if you have a mountain of complex, poorly verified data.
It may seem like you spend all day crunching the numbers without learning anything about how your supply chain actually operates. We help our communities build a complete picture of supplier operations and risk exposure, not just by providing data but validating it too. This ensures everyone in a supply chain has the best foundation to base their decision making on.
Data is there to make things simpler and less complex. If you are feeling hindered by multiple, complicated inputs and analytical processes, a portal like the one we use could immediately start saving you time. Drive growth in new markets The best opportunities for value growth are sometimes found outside your established markets and supply chains. Previously untapped markets are often full of eager companies looking to innovate and develop at a rapid rate.
So only renew items when necessary. And make sure you factor in the cost of waiting for a replacement as well. For example, machine parts should be replaced regularly to prevent failure, but consumables can be replaced only when needed. Duplication is both expensive and unnecessary. Larger orders from one supplier lead to better discounts. So try to only purchase one type of product or more from the same supplier.
Linking your purchasing system to your inventory and accounting systems will not only help you cut down staffing costs, but will also help you prevent mistakes. Staffing costs can be cut down further by streamlining processes to reduce operational costs.
Supplier dependence is one of the biggest risks an organization could face. This includes paying close attention to contracts, following up with suppliers, and taking action to avoid logistical issues. Part of risk management also means focusing on cost avoidance. Traditional SRM Supplier Relationship Management models are not suitable for managing supplier innovation for many reasons.
The Purchasing function has an important role to play in defining and managing this innovation ecosystem, as it has solid expertise in managing relationships with external stakeholders. The business acquisition process usually contains a lot of losses for companies operating in the B2B sector. This process generates a lot of rework change of specifications, change of call for tenders … , overproduction too many plans, calls for tenders to suppliers, etc. This waste has a strong impact on the quality and responsiveness of the proposition for the customer and, consequently, on the success rate of the company on its customer propositions.
The most successful companies especially in the automotive sector have implemented sophisticated parametric costing solutions that use existing data technical and economic to significantly reduce the time and resources required to cost new products and orient design proposals towards best practices. The EasyKost software www. Use the wealth of your data to increase the success rate on your customer calls for tenders!
Purchasing organizations are often involved too late in the international development of the company, although they play an important role in the successful penetration of new markets. Here are three examples where Purchasing can bring strong added value:. The Macro-Study tool is a powerful tool for modeling the scenario according to different criteria level of competitiveness, access to the product, risk, opportunities, etc. Ensure the success of the industrial project by qualifying the right suppliers and achieving the specific location ratio.
Secure operational expansion by developing or identifying vendors who bring the capabilities and capabilities expected. Supplier development initiatives in the growing region also help raise awareness among suppliers and create differentiation from competitors.
Purchasing is the cornerstone for success in growing markets. Traditionally, we expect Purchasing to create synergies that are part of the deal equation, which is already a lot. For example, having a large fleet, the company can conclude an agreement with the automaker and lease cars of its brand with a significant discount, as they will be part of the marketing program. In the airline industry, manufacturers are willing to pay airlines for the opportunity to serve their products beverages, snacks and cosmetics or branded napkins and cups to the passengers.
You can co-brand a small outsourced warehouse or sell the name of a metro station, stadium or aircraft - the possibilities of marketing cooperation are truly limitless. All over the world, there are programs to support small private entrepreneurs, war veterans, local crafts etc.
Thus, your company will realize its social responsibility and improve its public image. Suppliers who are customers or marketing partners of your company and generate significant revenues can also receive certain preferences. Undoubtedly, your long-term strategic partners should enjoy some recognition in regular tenders - the main thing is that it is not based on a subjective assessment of an internal requestor, but clearly reflected in the tender evaluation.
Procurement can provide additional tools to motivate staff. For example, corporate travel discounts on air tickets and hotels can be extended to private travel of company personnel and their families. Your suppliers can provide offers to your staff or set up a temporary sales point in your office. In some companies, there are sections of a corporate website with special offers from suppliers, and discount cards are issued.
The staff discount program is specified in the employment contract, as one of the benefits provided to employees.
The above examples are meant to demonstrate that procurement can add value not only by traditional price negotiations. The revenue increases, the image of the company improves, relationship with suppliers is strengthened, the brand is promoted - all thanks to the comprehensive professionalism of the buyers.
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