A fantastic procurement provider will have experience working with manufacturers in a variety of industries including the transport, automotive, paper, and aerospace, oil, packaging, in addition to residential and commercial building. Procurement providers may also provide a web-based package of solutions – a one-source alternative for associations as a means of managing and mitigating risks in the supply chain. A good supplier will conduct due diligence in order to significantly mitigate risk, in addition to decrease the overall costs of managing vendor compliance. Direct and indirect procurement services
- Direct or production procurement
This involves sourcing raw materials and components which will be used in producing the product. The supplier will work with you in the product concept stage, analyzing competitive product costs, and identifying the best sourcing strategy for that specific project. The supplier may negotiate with providers on your behalf, ensure openness, and always work with your supply chain for the promotion of continuous cost improvement.
- Indirect or non-production procurement
Procurement involves sourcing everything that is needed for the performance of a business – like email, telecom, repair, maintenance and operational services, transport, information technology, contract labor and everything in between. Your provider will help define your needs, solicit bids, manage and negotiate with suppliers, with the goal of decreasing costs, improving service levels and continuous process improvement.
- Accounts payable sourcing
These services include payment for goods and services like processing invoices, addressing flaws, resolving disagreements and responding to queries from vendors – with improved management of cash flow, better pay visibility and enhanced discount catch. Recognizing spend and then optimizing requisition, ordering and payment cycles in your supply chain is important to enjoying great savings, controlling your budget and standardizing company-wide procurement process. Procurement services suppliers will find and manage the very best and most reliable suppliers for your benefit.
If we already convinced you to tap the services of a procurement company, you may wonder how you can be sure that you find the best one. Usually, in a business, this job is delegated to the administrative department in a business company. A good procurement provider can provide you with a web-based data analytics platform which is proven to provide a return on investment in a few weeks. This allows the supplier to identify opportunities for cost savings from actions such as copy payment analysis, supplier consolidation and renegade spend, as a means of positively impacting your bottom-line.