Procurement leaders are often expected to be experts in every category. There’s pressure to manage your company’s complex spend cube, reduce risk and cut down on costs, all with limited resources. While organizations are looking to increase savings, improve efficiencies in their supply chain and manage supplier risk, a group purchasing organization (GPO) can be a guide to accomplishing these goals and more. One key way to leverage your GPO to attain these goals is to put your indirect spend under a microscope and evaluate where you can streamline and strategize to reduce costs.
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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.
When people buy groceries, they decide which stores will save them money and offer the products they need. Some stores require membership fees; some focus only on specialty groceries, while others provide the widest possible range of products. Group purchasing entities work in a similar way. Like the grocery store example, understanding the subtle differences is key to finding the right purchasing partner.
As more workers return to the office, they may find the office is adapting to a new way of working. Attractive and ergonomic workspaces are top-of-mind for companies looking to entice their best employees back into the building. For many employers, it’s a move to renew workspaces and re-energize productivity.
Having deep relationships with your suppliers is the best way to ensure you are taken care of and your orders are fulfilled. Whether it be a product or service, delays and shortages happen BUT when you have an open line of communication and a relationship with your supplier, it is more likely that you will receive quick, quality service.
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.
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.
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!
