Puridiom Post Article: 5 Pro-Active Procurement Strategies to Leverage Profitability

Five Pro-Active Procurement Strategies
to Leverage Profitability

The current recession has had an effect on all businesses. Times are tough and decisions to cut costs are being made. Procurement managers are looking for answers to some of the toughest challenges businesses have ever faced, having to do more with fewer resources, deal with maintaining or finding new suppliers, etc. However, we believe there are still opportunities to leverage profitability.

Puridiom has a long history of expertise and experience with hundreds of clients. We have put together five pro-active strategies to help your organization make it through challenging times and come out in an even better position in the post-recession era.

News from Your Procure-to-Pay Solution Provider

Utilize existing resources. If you have an e-procurement solution in place, make sure you understand and utilize all of its capabilities, and that all users of the solution are trained and able to take advantage of these capabilities. For example, Puridiom’s Procure-to-Pay solution has many tools, such as approval workflow, auto award processing, online sourcing, catalog content management, and EIPP, that can reduce cycle processing times up to 80%.
Identify cost cutting strategies and drive savings. Communication with other departments and managers is key to properly identify cost cutting strategies. Once cost cuts are defined and identified, put the appropriate spend and visibility controls in place. Puridiom spend management controls dramatically reduce maverick spend and eliminate contract price leakage. In addition, increased visibility opens opportunities for savings for clients with strategic sourcing initiatives.
Ensure contract compliance. Identify contracts and ensure that contract pricing is maintained. Many solutions offer contract management. If you have this option, utilize it, or manually keep on top of contract pricing. Puridiom defines catalogs with contracted pricing and can automatically ensure that contract pricing is used and keeps the supplier compliant, while improving supplier collaboration, reducing supply chain risks
Re-negotiate existing contracts and source new contracts. Many suppliers are experiencing the same financial difficulties as your business. Re-negotiate existing contracts to obtain more favorable pricing or discounts. Working together with suppliers improves communication and collaboration and mitigates risk
Maintain and find strategic suppliers to positively impact revenue and production. Take a close look at critical suppliers and pre-qualify additional suppliers so that if you need a back up, you have one. It is critical for organizations to establish strategic supplier relationships, and choose suppliers that positively impact revenue, production, and reputation. Establishing or maintaining these strategic suppliers will be just as important when the economy improves, since buyers will want to keep lower prices and maintain quality.

Implementing these five strategies are some of the ways your organization can take a pro-active approach in meeting the economic challenges of today. Puridiom is there for you in good times and bad, as we have been for over 27 years. We hope our experience can be of assistance to you as we offer you our best advice. For more information about effective procurement strategies and solutions, please contact Puridiom to schedule a short call or demo.

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Five Pro-Active Procurement Strategies to Leverage Profitability

Five Pro-Active Procurement Strategies
to Leverage Profitability