Procurement teams are managing a diverse range of spend categories. Industry insiders say many are missing out on opportunities in those undermanaged spend categories and as a result, increasing risk.
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As we envision a post-pandemic world, leaders find themselves challenged with ongoing global supply chain disruptions, increased market volatility, and a labor shortage. Meanwhile, conscious consumerism and the need for more resilient and sustainable supply chains have widened the procurement agenda as organizations look to procurement and supply chain leaders to drive sustainability, innovation, and digitization. Despite the upheaval, leaders must continue to deliver on cost savings and improvements.
Businesses nationwide are making indirect spend a key strategic priority for cost reduction. In order to fully understand indirect spend and how it impacts your organizations efficiency and bottom line, you need to understand what all factors into it. Indirect spend is the costs associated with purchasing goods or services that in the end don’t factor into the solution your organization provides. These are items such as office supplies, travel expenses, fulfillment orders, maintenance costs, food and beverage, etc.
It’s no secret that any company’s goal is to save money. When you’re dealing with different situations that require a variety of resources, the costs add up quickly! Sinclair Broadcast Group ran into this while looking to purchase merchandise for their companies rebrand. They began looking at their options, but quickly realized the massive amount of product inventory might pose a challenge to their procurement team.
Most procurement teams, or designated purchasing professionals, are tasked with managing several different departments’ needs. There is no way you can be an expert on everything, and that is why we are here to help!
There are plenty of misconceptions about what joining a buying group is like. These misconceptions often mislead organizations and dissuade them from leveraging the benefits buying groups (or group purchasing organizations) can provide.
Did you know all group purchasing organizations (GPOs) are similar, but not exactly the same? At the core, GPOs are all united in wanting to help your organization succeed by saving time, money and resources, but some offer more extensive benefits.
It isn’t uncommon for procurement to have to purchase for several different departments within an organization. It’s hard to be an expert in all of the different product and service offerings available and also fully understand what your stakeholders need to be successful.
Choosing the right purchasing structure for your organization isn’t an easy, quick decision. It's important to look at all of your options and weigh the pros and cons. You may even find that a combination of two types is best suited for you and your organization.
