The benefits of using a Procurement Specialist
What is Procurement?
In order to determine if a procurement specialist is the right thing for your business it’s important to first understand how procurement works, then examine the benefits of a procurement specialist. Firstly, we will need to understand what the word procurement actually means.
Procurement can be defined as “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.”
Essentially it is purchasing goods or service, with a focus on making sure that it is optimised to be the best deal for the business in respects to quality, price and accuracy for the job. This is especially important for public procurement due to being paid for by the public sector & tax payer’s money, so procurement choices must be justified.
Now you have an understanding of what procurement is, we can explain 4 benefits using a procurement specialist can have on your business.
1 – Cost Reduction
One of the most beneficial aspects of using procurement specialists is the cost reduction that can occur from strategically sourcing products, and deciding which suppliers to use as part of the procurement plan. By using the planning time to negotiate with suppliers, and focusing solely on procurement, more time can be used on supplier negotiations and relationship management to discuss price and potentially reduce the cost of items. When more time is invested in negotiations and sourcing then you can more easily access cost reductions. In contrast, without a procurement specialist spending time managing relationships and comparing suppliers there is less time to negotiate and you are unlikely to access the cost reductions, often paying much closer to the market rate.
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
The benefits of implementing procurement specialist can be felt through your whole organisation. Procurement Specialists can ensure your business is better positioned to meet customers’ needs, improve or protect cash flow, and ensures confidence in your businesses ability to make smart purchasing decisions
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. 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 perspective can give 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. By innovating you can look at aspects which may have previously been overlooked such as tail spend management, which allows cost savings in the most mis-managed category spend in business.
If you want your business to benefit from our Procurement Specialists get in contact today