Senior Executives; do you think that your procurement team is getting the best cost available to you? Well Hold On!
Todays post is provided courtesy of Mr. Eugene Duynstee, President of KPM Enterprises Inc.
The following content was presented by: Eugene Duynstee, President of KPM Enterprises Inc. and Ron Southard, CEO of SafeSourcing Inc. at the ProcureCon Canada Conference 2014 which was attended by a number of Canada’s Senior Procurement Professionals
All too frequently procurement professionals faced with negotiation with incumbent suppliers are being told:
• We always give you our best price
• Our products/ services are unique – no one else can do what we do
• No one else knows your business as well as we do and would look after you the way we do
If you sense these are not true, you would be right. The result? “Money is left on the table”.
The dilemma: You have a lot on your plate, and there is often pressure from above to just “stick with the incumbent”, but your responsibility is to garner the best cost for the required quality and service, so what do you do?
Take the easy path, or the right path? How do you capture the “money left on the table”?
The answer: You need to find a way to dramatically improve the efficiency and effectiveness of your buying process. This is what will lead to success:
• Consider more vendors: double the number of eager vendors wanting your business
• Develop a more efficient RFP process: process 3-5 X the # of RFP’s in the same amount of time.
• Level the playing field for vendors competing for your business: don’t allow one vendor to have undue influence
• Expand the scope of information: provides you with a better assessment based on quality and service, as well as price.
• Conduct an e-auction: this has been proven to establish the best price from vendors
Where do you find this? All the e-procurement tools necessary to realize this innovative buying process are currently in use, and are readily available and supported by a capable and experienced procurement partner.
What makes e-procurement easy to use?
• The process is structured and automated
• It provides instant access to extensive pool of supplier and product information
• It does not require your IT group
• It is led by a partner that does 80% of the work
What does an eProcurement partner provide to you?
• Detailed, comprehensive specifications
• Extensive vendor data base
• Easy to use, flexible software
• Remote access (cloud based)
• Vendor training
• In-depth category expertise
• And importantly, a no risk trial to get you started and comfortable
What results can you expect?
• Save an additional 15-25% on your costs
• Deliver an ROI 10 – 15X the investment
• Increase your impact on the business
• And most importantly, the “money left on the table” is captured!
If you’d like to learn more about how easy it can be to capture money that you ARE leaving on the table, please contact a SafeSourcing Customer Services Representative.
We look forward to and appreciate your comments!