We all want to save money. Who doesn’t? But sometimes it isn’t always the easiest task in the world to make those savings.
Making procurement savings can be a very difficult task to perform if you don’t know what you’re doing. Procurement in its simplest form is purchasing goods, or services on behalf of your organisation. Most businesses have procurement processes, some are thought through some are not. Some processes are very effective, as costs are kept to a minimum along with company spending due to the organisation having a procurement strategy. Others buy of the cuff, at the last minute or most convenient supplier (even worse favourite!) and do not leverage their position to get the best deal. This is unfortunately the case for many businesses, so why do some organisations have it nailed and others are frantically struggling?
Strategy, Strategy, Strategy
No matter how small or large you are in the business world, devising a procurement strategy enables you to optimise your spend and ensure you are purchasing your supplies at the correct price, at the right quality, time and palace to suit your business. By evaluating what you buy it enables you to reduce stock/supplies stored, achieve economies of scale savings, evaluate outsourcing benefits, reduce spend, renegotiate contracts that will benefit your business.
Running a procurement process to purchase goods, services, or to outsource a service is often complex and time consuming but can redefine your relationship with your suppliers. If not done correctly you can end up wasting a large sum of money instead of saving.
Cost savings are not going to happen overnight, you need to stay on top of your accounts and know what to look out for. Do you know how to analyse your business operations to optimise them and the associated spend? There is a need to challenge the conventional thinking, this works best when there is an unbiased opinion from experts in the field. eXceeding are here to assist you.
eXceeding’s procurement professionals work with you to understand your business requirements. Our procuress analyse all aspects of the business to optimise spending. Could smarter negotiation terms with your suppliers be useful? Effective negotiation can lead to smoother running engagement with your suppliers and improve contract management.
For you to have an effective cost saving strategy it is important that you know where you money is being spent and by whom. Can you confidently answer the following questions on where and how your company budget is being spent?
- Do you know who in your organisation is purchasing various items?
- Are these items needed?
- If so, are you keeping track of your purchases in order to analyse data?
- How much of each item do you buy?
- How many suppliers do you have in total?
- Do you know how much you spend with each supplier?
- Who authorises purchases?
- When did you last formally negotiate with all of your suppliers?
All these questions must be asked before any deal is done! If you ask these questions after the purchase has been made, what good will that do? Detailed analysis of your purchases may initially seem like a bore, but in the long term you will be able to analyse your procurement data to see where money could have been saved and prevent those same mistakes happening again in the future.
If you’re trying to improve your procurement and deliver cost savings processes, make sure that there is an effective communication with your employees; they are aware and understand why this process needs to be improved. Employees must know why savings need to be made in order for them to reduce the amount of purchases they make. Smarter purchasing must have the attention and devotion of all members of the organisation, not just procurement professionals.
eXceeding assists organisations that wish to run tenders, or procurement processes in order to procure complex solutions and/or contracted 3rd party services.
If you are not used to running such exercises on a regular basis, or you do not have the in-house skills to manage the type of technology, or service that you’re looking to procure, eXceeding have the specialists necessary to provide assistance.
Our bespoke service ensures that you define what you need, select the best potential providers, get the most favourable commercial terms, with a contract that protects your organisation, rather than just your supplier. Our experts have many years of experience with all aspects of the tendering processes. Whatever your needs, we are here to help.