There are many companies that have not used eProcurement tools for construction sourcing!
Today’s post is by Ronald D. Southard, Chairman and CEO at SafeSourcing Inc.
Below is the conclusion from a white paper Titled “Construction Sourcing with eProcurement Tools” that I wrote many years ago. Surprisingly not a lot has changed, particularly in the retail space. Too much money is being left on the table and to much grey area is being left in contracts.
There are many companies that have not used eProcurement tools for construction sourcing. In fact, below the Fortune 500 level, it is possible that as many as 80% of companies do not use these tools, as they have historically been too expensive. There will be a continuing struggle to change the way companies operate and collaborate internally on procurement initiatives in more current productive ways. However, with the advent of SaaS cloud-based solutions like SafeSourceIt™, these tools are now available to any company, regardless of size, that wishes to use them. There really is no spend too small or category to complex, because there are always suppliers available that are interested in earning new business. In many cases these suppliers are also beginning to use these tools to make their sourcing easier and more cost effective. As a host you may not know who they are, but the use of these tools will help you find them, improve your processes and your company’s profitability. At the executive suite this is what companies expect and what business and free markets are all about.
Here is the thing, same store sales growth and profit can only hide underperforming contracts for so long. Many in construction related procurement need to catch up with the operations, risk, and loss prevention teams among others in order to drive down cost that re artificially high.
If you would like to understand how we can accomplish that in your current quarter, click the link and we’ll talk.