Todays post is from Ronald D. Southard, CEO at SafeSourcing Inc.
Why not apply the same strategy that you would for your personal health when reviewing your first four month e-procurement results.
Listed below are 12 questions that companies can ask themselves with the resulting answer going into either an assets or liabilities column in order to provide a semi-annual health check of your e-procurement progress or lack there of. Hopefully the former.
1. How many new suppliers were reviewed to provide new or existing products and services during the past four months?
2. How many of those suppliers were actually selected to provide new products or services during the past four months?
3. How much of your total spend was assigned to e-procurement tools such as RFI’s RFP’s and Reverse Auctions or RFQ’s.
4. How much of your private label spend was assigned to e-procurement tools such as RFI’s, RFP’s and Reverse Auctions or RFQ’s.
5. How much of your services spend was assigned to e-procurement tools such as RFI’s, RFP’s and Reverse Auctions or RFQ’s.
6. How much of your supplies spend was assigned to e-procurement tools such as RFI’s, RFP’s and Reverse Auctions or RFQ’s.
7. How many of your category managers and or buyers have on line accessible product and services specifications for each product or service they buy.
8. How much time is now being invested in gathering existing or new product specifications?
9. How much were your total cost of goods reduced during the last 4 months through the use of e-procurement tools.
10. How much was your gross margin improved by reduction in cost of goods during the last 4 months as a result of using e-procurement tools.
11. How much time do your category managers and suppliers spend doing supplier research weekly.
12. How many suppliers have been contributing greater than 75% of specific category volume for a period of greater than 5 years?
13. Of those suppliers, how many provide multiple products and or services to your company?
14. Are you satisfied with the product safety of all products from all sources?
15. How much was total company net profit improved by the use of e-procurement tools last four months?
It’s important to remember with eight months left to go in the year that if a company assigns just ten percent (10%) of their cost of goods to e-procurement tools, net earnings can improve by up to 82% or more. You can not accomplish this without advanced tools that extend your productivity.
If you don’t believe it, email me at firstname.lastname@example.org and let me prove it to you. you won’t be sorry!
We appreciate and look forward to your comments.