It is better to be unique than to be the best, it makes you number one but, unique makes you the only one. The statement clearly expresses the importance to be unique to become sold out. It is a mantra for sustainable procurement success.
As per the information provided by the Capgemini Consulting in their article written by Stefan Becker, 74% of respondents expressed that procurement is endeavoring to gain control over the major spend categories.
The major areas are marketing, travel, training, IT consulting, consulting, and many more industries and their CPO’s are encouraging for the continuation of the process in order to gain further benefits by implementing professional approach.
The success factor involves
Strategic sourcing empowers SME’s to seize entire benefits of cost and capability offered by the economical traders, suppliers and agents. Below given is an easy-to-understand framework deliberated to give cutthroat benefits!
- Augment cost savings
Strategic sourcing plays a significant role in analyzing and revamping the bottom level of business, which has a direct impact on savings. Profitable procurement ensures accurate estimation of supplier negotiations. It is essential to improve internal collaboration between departments to nullify the gaps completely. SME’s can consider investing on technologies to recognize potential leaks in sourcing projects thereby sealing the investment completely. Identifying a perfect source base as a resource augments the efficiency and reduces the cost.
- Cross-Functional collaboration
It is important to built approachable senior role models who can create confidence, coordination, inspiring to initiate the fundamental changes in the operational activities. Good quality purchasing abilities generate valuable output inspiring new hires motivating them to work steadily with enhanced confidence level.
- Implement efficient inventory management system
An efficient inventory management system solves many problems at core level, where it is possible to track entire data with respect the purchase activities leading to significant savings. Assured results are achieved through the vendor communication management where business organizations can experience the following benefits
- Confirmation details of receipt of order
- Documentation of quality consignment
- Ensure right quantity of goods is delivered and received
- Verification of documents
Contract agreement saves many issues that are likely arise while goods are transit might have lost; dispatch of goods is not reported by the vendor, tampering of goods during transit and variation in quantity or variation in quality. These are few concerned areas where inventory management system plays a vital role in the organizational development.