The Six Basics of Modern Procurement
Tailor Train is a company dedicated to helping businesses improve and develop, as a procurement company Manchester, we know that when it comes to modern procurement, there are six very basic fundamentals.
If you choose to acknowledge and follow these fundamentals, you have the potential to completely change the way in which your company handles procurement for the better.
Keeping down costs and maximising profits are by products of successful procurement, read on to find out the six basics of modern procurement.
Identify the Consumer’s Need
Before any buying and selling occurs in any form, you must first identify the consumer’s need. The consumer’s wants and needs are two entirely different things.
‘Identifying stakeholder or customer need, and separating it from what the customer wants, is crucial’, remarked Sparkes. ‘If you don’t understand what that need is – it doesn’t matter what the want is – you’ll get it wrong.
In other words, isolate what the consumer needs and then decide what they want and provide it to them.
Look Further Than Your Own Marketspace
Looking further than your own marketspace is a great way to discover innovation. Businesses are often anchored by the traditional methods employed by the marketspace and industry they operate within.
Take it from a procurement company Manchester, looking beyond your market and searching for collaborations such as new suppliers can help improve your businesses profit margins.
Building Strong Relationships is Everything in Procurement
Managing your key relationships within procurement will often be the determining factor in your success. Having dedicated account managers and contract managers will help you build strong relationships with suppliers, distributers etc.
However, as a procurement company Manchester we have to highlight that this does not just mean keeping suppliers etc happy. Track and monitor that they are keeping up and fulfilling their contractual obligations.
Collect Data Regarding Your Buying and Selling
In modern business, collecting data is an absolute necessity. In order to highlight where you are succeeding and possibly going wrong, you need to gather and collect as much data as possible.
This means tracking your spend data. If you are making a huge amount of money but your spend data is exceptionally high then your business may not be as profitable as you once thought.
Let Your Partners Know Exactly What You Are Doing
As a procurement company Manchester, we know the importance of communicating with your key relationships and letting them know exactly what you are doing.
Keeping people that are key to your business in the know will help you, if you are explicit about your marketing strategy they may well be able to help and make suggestions.
Know Your Limits for Negotiation
Knowing the limits of your negotiation power before engaging in negotiations with suppliers will protect you from going over your limits and leaving yourself in a sticky situation.
This will help things run a lot smoother.
Speak to Your Procurement Company Manchester Company Manchester
Get in touch with your business procurement company Manchester today for help and advice on how to successfully procure within business.
We also help businesses with services in business transformation and have a solution to suit your businesses’ needs.