Thursday 17 January 2013

Three Cost-Cutting Resolutions for Procurement

Authored by Mike Roberts

We are now well into January and perhaps we are a little late with some New Year resolutions, but if you're still thinking about making some, here are three easy and attainable procurement resolutions that will help your organisation control costs in the coming year.


1.     I will break down departmental silos.
Part of the issue with rogue spending is that your staff do not fully understand the impact of their spending on the bottom line. Take the New Year as an opportunity to discuss procurement's vision with each department. How you help cuts costs and empowers them to help reach your goal of bringing more spend under management.

2.   I will competitively source categories in need of review.
Many businesses leave major money on the table because they fail to challenge incumbent suppliers. When taken to market, you'll be surprised just how often your current supplier wins. However, the increased competition focuses the incumbent to dramatically reduce your total costs.

3. Spend analysis will be my top priority.
You can't control costs that you can't see. Advanced spend analysis is the easiest way to save money and bring more spend under management. The visibility alone will help your team make better procurement decisions for the entire organisation.


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