Which is the right level of purchasing for your company?
Effective purchasing, aligned with the company's key needs, contributes to long-term goals such as profitability, competitive advantage and growth in company value.
Which is the right level of purchasing for your company?
📌 Effective purchasing, aligned with a company's key needs, contributes to long-term goals such as profitability, competitive advantage and growth in company value.
📌The success of companies like Dell, Wal-Mart or Honda is partly based on well-managed purchasing and supply chain management.
📌The increasing share of externally purchased components and services, which can account for up to 80% of costs, increases the complexity and riskiness of supply chains.
📌However, many organizations still do not see purchasing as strategic, which leads to several mistakes, such as inappropriate centralization, poor purchasing strategy, weak purchasing processes and lack of purchasing knowledge.
📈 To improve, companies should gather a detailed overview of all purchases, analyze purchasing categories and strategies, and determine which solution delivers the greatest economic benefit.
📎 A continuous initiative to increase the added value of purchasing is also important.
🔑 Strategic buying that anticipates future profitable areas and innovative approaches is key to sustained growth in company value and shareholder returns.
Top executives are rational people who will not be drunk on air-locks and unclear benefits; in other words, the applicant must demonstrate that e-procurement is not a cost but an investment with a clear and high return. In this article, we therefore share a simple guide on how to demonstrate the benefits of e-procurement to an organisation's bottom line, i.e. the money that implementing e-procurement actually brings to the company.
Effective purchasing, aligned with the company's key needs, contributes to long-term goals such as profitability, competitive advantage and growth in company value.
In this article we take a detailed look at the issue of home-grown software add-ons, which are found in many companies and which, despite all efforts, usually represent a major obstacle to effective and professional purchasing.
I confess that when I became a purchasing director with the authority and responsibility to develop my department, my primary focus was on developing purchasing skills, collaboration with other departments, centralization, purchasing controlling and implementing at least minimal supplier relationship management.
Return on investment within the first year of project implementation.*
*The ROI estimate is based on real data gathered from our clients and their successfully completed projects.
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