Here are two ways you can make sure you are getting the most savings from your eProcurement investment.
Today’s post is by Dave Wenig Sr. Vice President Sales, and Services at SafeSourcing Inc.
Now that you are using eProcurement as part of your company’s procure-to-pay initiatives, you will likely want to get the most ROI from the investment and focus on projects that will be the most impactful to the company’s results.
There are two ways I always advise a client to make sure they are able to reach their goals.
First, source as much as you possibly can through RFQ. You are already buying the product or service, so take one last step of making sure the vendors also go through an RFQ process. SafeSourcing will do most of the work to prepare using whatever specifications or requirements you are already using and SafeSourcing will also work with all the vendors. There is not much more you need to do, but the upside for savings potential vs. traditional negotiation is dramatic. Bottom line: the more dollars you put through your RFQ solution, the more savings dollars you will generate.
Second, once you have concluded the RFQ, you will have an opportunity to make sure you are getting the most from that effort. Take that opportunity. In a typical SafeSourcing RFQ, we are going to report on many metrics. Let us just focus on two, All Low Quotes Savings and Low Company Savings. The All-Low Quotes Savings is a figure that if you were able to split the award and offer each item to the lowest vendor, that would be the savings. In RFQs with many items, it is often higher than Low Company Savings. Low Company Savings is a figure that represents the highest overall savings from one vendor. The piece of advice post-RFQ is to do whatever you can to close the gap between Low Company and All Low Quotes to get your award of business as low as is possible. SafeSourcing can help in that stage too.
That is just two tips to maximize your savings, but if you follow these, you will be setting yourself up for success and finishing strong.
For more information, please contact SafeSourcing.