Balancing high priority procurement projects can be difficult due to some very complex factors including commodity indices,
Today’s post is by David Wenig; Senior Account Manager at SafeSourcing.
Balancing high priority procurement projects can be difficult due to some very complex factors including commodity indices, urgency, safety programs, corporate initiatives and more. In an effort to help ease the process a bit, I would like to share a bit of category advice.
Last night, over dinner, I had a conversation with a contractor that affirmed a concept that I already knew to be true. He said that he is going into a slow period of the year for contractors. Beginning around Thanksgiving, the work available for contractors becomes scarce.
This year, around the 3rd of January, my phone began ringing and ringing. On the other end were the contractors with whom I had worked throughout the year on procurement projects for our customers. The message was the same; they all wanted to know if there were any new projects that were ready to go out to bid.
What this means for retailers is that there is no time like the present to source your upcoming construction projects. From a strategic standpoint, the timing is at its best and savings will follow. Take a look at your project lists and contact your strategic sourcing partner to fast track these projects for completion as soon as possible.
If you are the type of person who prefers facts to conjecture, I will leave you with this example. In a long-running project in the construction category for a customer, we held bids for general contractors several times per month. The bids that were completed in January and February showed, on average, 75% more savings than the overall average savings for the project as a whole.
We look forward to and appreciate your comments.