Is procurement a place to turn in light of more news about “The Great Deceleration?” Answer: YES!
Today’s post is by Steve Schwerin, Account Manager at SafeSourcing.
Your procurement solution provider professionals may not have funky offices in San Francisco, London or New York to their credit-a picture painted by another author to describe another industry-but they may have what it takes to help your company address what was described as, “The Great Deceleration” in The Economist on July 27, 2013 as well as at economist.com. I have to believe that we are going to see more and more written about how slower growth rates in emerging economies will affect the world at large.
Economies like those of China and India are slowing down. This might not be something to dread as emerging markets like these have experienced extended periods of double-digit growth over the past decade. Now that they are bigger economies, smaller growth numbers don’t necessarily mean fewer goods and services produced. They do, however, mean that there may be fewer low-hanging fruit to pick in a company’s search for cost savings through off-shoring and importing.
Where to turn in times like these? Procurement might hold some of the answers, specifically eProcurement. I think there are two things to consider here. First, you may not be able to drive savings by merely looking off shore. Second, as emerging economies slow, some prices in older markets are likely to become more competitive. Rising prices in emerging markets are certainly one cause of this, but competition driven process improvements in older economies is another. As you look around for options, your eProcurement solution provider professionals are in the perfect position to help you source the best products at the best price as these changes take effect. Focusing on “The Great Deceleration,” if there is one, will not help you grow your business. Contacting your eProcurement solution provider professional, however, IS a step that can do just that.
For more information on how SafeSourcing can help you with your eProcurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative at 888-261-9070.
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