Will your discovery work lead to the best decisions you can make?
Today’s post is from our SafeSourcing Archives
Does your preparation matter that much? Will your discovery work lead to the best decisions you can make?
Let’s assume you are procurement professional for a company that is ready to find a better solution for their need. This is when the legwork begins. So how much legwork is necessary to get the results you need? There are many factors that should be researched and investigated to make a valuable decision for your company. Below are numerous, but important, factors that will entail your legwork. In the ensuing case study we have documented the factors, processes and specifics that two different procurement professionals went through.
KNOWING THE MARKET:
- Market Trends– Trends are what allow traders and investors to capture profits. Whether on a short- or long-term time frame, in an overall trending market or a ranging environment, the flow from one price to another is what creates profits and losses. This is something that the two procurement professionals kept an eye on so when the time comes, they are armed with as much information as possible to make the best decision for their company.
- Pricing Trends– Understanding where the market is headed will allow the company’s to make better decisions regarding long / short term contracts with possible price review intermittently. The current price may be desirable, but understanding the trend will allow for better decisions. Awareness and connection to the industry can only help them when they are ready to act and, more importantly, develop a solid long term strategy.
- Hurdles– Think about people running in a race. They are running, and then they see something that blocks their way. They can stop running OR they can jump over the hurdle in the road and keep running. Think about work the same way. You worked hard to find the right supplier and cost that you like. Then there are unforeseen problems that could cost additional expenditures. Building in contingencies will avoid such issues.
- Product Content – This is referring to the materials that are required to produce a product in order to meet necessary standards or specifications. This will affect the price of the product or service you want to purchase. Additionally, each company must decide what is right for them when it comes to the environmental impact. Awarding business to a vendor that has “green” initiatives already in place will bring goodwill in the community it serves and improve company image while doing what is right for the environment.
For more information on how we can help you with your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.
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