Today’s post is by David Wenig; Senior Account Manager at SafeSourcing. David asks "As a procurement professional, how well do you know the products you purchase?”
Here is a challenge: Pick a product that you purchase and write out a specification. Be specific and include components and peripherals. Take it a step further and write down how many and how often you purchase. Finally, what is the price you are currently paying for this product? Is that the same price you agreed to pay when at the beginning of the contract?
This exercise may seem basic, but this knowledge is a vital component of the procurement process. Here is a list of potential red flags that may mean it is time to research your products.
1. All of your product data is in the form of a vendor invoice.
2. You are uncertain of your order volumes or frequencies.
3. You have been placing the exact same orders for years.
4. Your pricing fluctuates often.
Be honest with yourself; is there room for improvement in product knowledge? I would encourage you to reach out to your strategic sourcing partner for suggestions. Aside from dollar savings results, you will also benefit from having a complete set of product specifications, vendor information and more at the completions of your strategic sourcing process.
For more information on SafeSourcing and how we can assist with this process, please contact a Customer Service Representative for more information.
We look forward to and appreciate your comments.