One definition of a successful purchase is the right product or service, delivered in the right place, at the right time, of the right quality, for the right price. There is scope for failure in each one of these elements. Managing procurement risk means understanding what can go wrong and having plans in place to avoid unwanted outcomes. Many organizations are not fully aware of the many types of procurement risk they are exposed to and are therefore not ready when supply chain disaster strikes.
For many businesses heavy equipment is a necessity to increase competitiveness and worker productivity; however, owning and maintaining an inventory of equipment assets can be extremely costly. Additionally, owning equipment can actually eat into worker productivity and result in diminished returns.
How can procurement teams help ease the equipment burden for their business? The answer is actually pretty simple, rent instead of buy. The rental of large physical assets and heavy equipment will optimize budget and operational efficiency.
Today’s economic environment is exerting extra pressure on companies to find new ways to reduce expenditure. Cost-saving is still the #1 goal in procurement.
A Group Purchasing Organization (GPO) is a member-based organization that provides companies with purchasing benefits that they would struggle to achieve on their own. GPOs have traditionally focused on obtaining discounts for their members through their ability to leverage volume purchases. Modern and successful GPOs now provide a wide range of benefits, way beyond savings.
Most procurement departments are familiar with running an office products Request For Proposal (RFP), especially the time, effort and resources required. Years of running RFPs may give a company confidence that they are putting in place an effective office supplies contract with negotiated savings. However, hidden costs are not always uncovered with an Office Products RFP.
Dan Grant, Senior Vice President Vertical Markets, and Lisa Wittmer, Vice President, Partner Development Technology Solutions, were featured by Supply Chain Now in a discussion on the difference between a traditional -vs- modern GPO, the depth of category expertise GPOs leverage for members, how GPOs are helping supply chain leaders future-proof their business, their 2021 supply chain predictions and MUCH more. Watch the video below!
⏰ Total Read Time: 5 minutes
Embracing the new business environment implications will help companies rise to the occasion and be a leader in longevity. By empowering companies to adopt change, leaders can increase agility and resilience, making any crisis disruption an opportunity for innovation - rather than an impediment to overcome. Whereas businesses hesitant to adopt new strategies, or avoiding change, are risking being left behind with diminishing returns. Enterprises looking for ways to simplify adoption, streamline processes, future-proof, and contain resource expenditures can look to their group purchasing organization (GPO) to help turn crisis into profit by implementing impactful change.
⏰ Total Read Time: 4 minutes
Disruption quickly, and often, dramatically alters the purchasing landscape. Enterprises nationwide are experiencing the impact this is taking on their human resource professionals. As the pandemic progresses, the HR function will be continually challenged with keeping workers safe, healthy and informed, in addition to their everyday performance duties. Soon - if not already- HR teams will face permanent changes such as:
Purchasing professionals are constantly being tasked to do more with less. There is an ever-growing savings goal and an unmanageable number of suppliers/categories to be responsible for, in addition to improving long-standing contract savings and service-levels, benchmarking results on current contracts and overall market trends, and satisfying end-user stakeholders’ priorities, unique needs and goals. Group purchasing organizations (GPOs) can narrow the scope of priorities for procurement as they take on and deliver on the most important value drivers.
⏰Total Read Time: 2 minutes
The National Oceanic Atmospheric Administration (NOAA) is predicting 2020’s hurricane season (June to November) to be 60% more active than usual.