7 Tips to make Procurement Easy for you
Updated: Jul 15, 2020
The cost paid for the procurement of goods is always a crucial factor, no matter how big or small a business enterprise is. Cutting down on spending at the cost of quality is never an option, neither is overspending on cheaper goods. The reason business enterprises have devoted teams and professionals is to sort the procurement process, procurement costs, and determine the efficiency of the final order.
The main goal for any business is Customer Satisfaction, to sustain the brand value, and promise nothing less than the top-notch quality supplies. And high-quality supplies come at a price. The budget largely determines procurement however it doesn't mean low spending may compromise the quality. Here are some ways to improve procurement.
Research the Prices
It is crucial to know who is offering goods at what price. Plan your procurement and filter out your requirement keeping in mind the present price trends of branded supplies. Utilise a driven approach if you want to save money and discuss the pricing to ensure cost-efficiency and a seamless procurement.
Negotiate before you seal the deal
Negotiation is a crucial activity before you go ahead with the procurement. A long term partnership with a supplier garners better rewards for the procurement managers and is mutually beneficial for both parties.
Value for money
Before overspending on big brands, you must consider their value. You can find several reliable brands that offer goods at competitive prices. Research on various brands that offer the same goods at the best prices. While quality isn't consistent in all brands, you can determine the utility and quality by comparing different models that are available in the market.
Efficient Delivery System
Associate with suppliers that have an efficient delivery process. You can often end up with low quality or high priced goods due to the inefficient delivery process. Delivery of the products plays a significant role in determining the kind of products you end up with.
Bulk buying may be a great tactic to chop down on spending and source quality branded goods at the best prices. If you are not sorting your procurement requirement efficiently, not only do you spend more on undesirable goods but the stored goods tend to hog up space in the storage facilities which would otherwise be utilised by high demand goods.
Sanction a Sensible Model
Do not let your budget be the ruling parameter for your procurement. Adopt a practical model based on proper research and data to focus on consumer demands. If the demand in the market is high and you are certain to sell out all the goods then, procuring large quantities for the best prices is the way to go.
Leverage E-Procurement platforms
E-procurement platforms reduce costs by leveraging volume, providing structured relationships and by using system improvements to cut down on external spending while improving quality and supplier performance. It eliminates paperwork, rework and errors.
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