The rationale for outside assistance
Too often there is insufficient collaboration either between your business needs and procurement or between the business and its suppliers. This can put excessive focus on the price paid for raw materials, products, or services at the expense of looking to reduce the total cost of operating.
A real drive towards lower operating costs and better procurement can produce more effective results, not just cheaper prices. Leveraging cost benefits in conjunction with making your business more efficient, in the long-term.
Can you really say your business addresses these issues together?
- How often are your prices challenged, in the current economic climate?
- How often do you actually formally tender core categories of spend within your business?
- Are your suppliers fit for purpose and what defines success criteria?
- Are suppliers aware of your strategy, have you asked them?
- Do your suppliers “fit’ with your procurement strategy?
- True benefit comes from suppliers improving in key areas, which drive bottom line profits.