10% Savings on purchasing means adding 100% to company´s earnings. Professional handling of needs, specifications, selection and contracts.
The economic performance of about 250 large companies teach us that a saving of 10% on purchasing will result in an increase of more than 100% on the operating result. How can you achieve? Through a very critical assessment of each purchase need, throught a careful consideration of the purchase specification , through a serious preparation of the vendor selection process and throught a perfect management of risks by means of a contract.
We can assist you to achieve that result. We are specialists in building a solid purchasing organization , in organizing the staff training, in implementing best in class processes and in implementing IT systems to secure the authorizations, processes and information. In addition, we can control all operational processes from requirements gathering, defining specifications, writing the request for proposal to vendor, execute the vendor selection process and execute the contract negotiation.
Need: having a strategic vision on the make or buy decision is crucial. The financial planning of the purchase must be agreed in advance. From the perspective of cost reduction and environmental sustainability we have to consider second hand purchases.
Specification: a best in class specification must be unambigious and complete to enable the supplier to respond with a clear and complete proposal. At the same time the specification should not be too exhaustive as that will diminish the amount of choices in the market. More choice means more competition means sharper price and terms.
Selection and Contract: an adequate vendor research and a rigorous vendor selection, together with the covering of most worst case scenario´s in a contract will eliminate a lot of risks for future.