Many businesses around the world are now seeking to cut expenses wherever they can.
One assumes you are currently doing everything to increase sales and the more obvious things to reduce costs like reduce staff head count etc but have you considered analyzing your spending and wringing out every last drop of opportunity from your supplier base and at the same time extracting every efficiency you can from your existing corporate infrastructure ?
An Enterprise’s success is not just measured in terms of rising sales but also in elimination of costs. The bit thats leftover (i.e. the difference between sales and costs), is the survival difference.
Taking a hard look at your organizations purchasing strategy will assist in the above processs with a view to implementing a low-cost electronic workflow tool from one of the numerous vendors out there. Just look for the words eProcurement software in Google and see how many hits come back at you.
You will of course have the big players come up like SAP and Microsoft but sometimes the best results for your dollar spend come from the smaller specialized vendors.
Our company sent out an RFQ to a lot of the big name providers for a new eProcurement system ; we concentrated on three and finally choose a system from Eyvo eProcurement Solutions ; they met all our criteria and seemed to have a good knowledge of what we required ; the small vendors seem to drill-down more into the core issues and never miss the point from a small company perspective.
Clearly there are multiple different perspectives for helping you streamline your procurement practice. Implementing good workflow tools for purchasing is just one of them that can produce strong analyzable savings.
Dr Janus Kodiak is a research fellow specializing in purchasing metrics and a director at a public engineering organization. See more articles on procurement at https://www.e-procurement.com Software and check out the purchasing system discussed here.