The benefits of using a Procurement Specialist
What is Procurement?
Have you ever wondered what the benefits of using a procurement specialist would bring to your business? Well look no further! Here at AMP Procurement we have all the answers. Firstly, you need to understand what the word ‘procurement’ actually means.
The official definition of the term is “the method of discovering and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agency buys goods or services through this practice, it is referred to as public procurement.”
Now (hopefully) you have an understanding of what procurement is, we can get to explain the 4 benefits of using a procurement specialist can have on your business.
1 – Cost Reduction
One of the most appreciated benefits of procurement specialists is the cost reduction that can occur from strategically sourcing products, and deciding which suppliers to get them from as part of the procurement plan. By using the planning time to negotiate with suppliers, and having the luxury of not working to a tight deadline, it can mean it is much easier to discuss price and potentially reduce the cost of items. When you are working within a time-frame that is fast approaching, you are the back foot. In contrast, during the process of getting quotes, you have the upper hand, comparing prices against other suppliers and the market rate without as much pressure hanging over you.
Tip: Procurement Specialists will have an extensive range of suppliers to choose from, allowing you to focus on other operations in the business while you let the specialists source the right product, at the right price.
2 – Improved Internal Success
These are the benefits to your company and our entire organization gained through a more effective buying approach. Procurement Specialists can ensure your business is better positioned to meet customers’ needs and aspirations, improve or protect cash flow, and instils a common language and ways of working together in order to buy well.
Ultimately, good buying can bring great value to an organization, ensuring your products are high quality is integral to any Procurement Specialist, and they are in the best position to negotiate a quality product for a even better price.
3 – Controlled Inventory
When you work with a procurement specialist, they have vast experience in supply chain management. There supply chain management expertise is crucial when it comes to controlling your stock. There are so many issues that can begin when your inventory is poorly controlled; Running out of stock, overstocking, losing track of returns. The list could go on! A procurement specialist will work alongside you to help control your stock and inventory processes.
Specialists have purchasing agreements with suppliers that allow business’s to have the exact products they need just-in-time to make the sale or delivery, allowing your company to focus their time on other departments and projects.
4 – Freedom to innovate
When businesses possess effective procurement management strategies, their priorities change. More specifically, when companies inefficiently manage procurement, their attention focuses on the short-term, while efficient procurement management enables long-term, high-level focus. In turn, this birds-eye perspective gives companies the freedom to innovate in ways they previously could not.
When you work in partner with a procurement specialist, you will increase the efficiency of your supply chain. The smooth running of your operation will free resources which, in turn, will help you improve efficiency in other areas of your business.
If you want your business to benefit from our Procurement Specialists get in contact today