PROCUREMENT IMPORTANT FOR ORGANISATIONS!
Procurement is often a
misunderstood and disregarded (unfortunately!) function of an organization.
However, procurement optimization can produce a host of benefits and add
tremendous value to your organization as a whole.
Procurement Optimization Can
Lead to Significant Savings
From a business
perspective, the most obvious benefits of an effective
procurement optimization are financial. Productively managing procurement
– and by extension purchasing – will allow an organization to realize immediate
upfront cost savings by procuring items, services, and contracts at the best
price available.
Furthermore, a company
will be able to properly take advantage of any warranties or discounts that are
often forgotten, leading to routinely neglected, yet critical, back-end
savings. A fully functional purchasing process will also allow for better
visibility into company spending and budgets.
Having a strong
understanding of company spending will allow organizations to negotiate better
contracts with vendors, enabling a company to take full advantage of discounts
that might have previously appeared unavailable to them. Visibility into
spending patterns and budgets will also allow organizations the option to
leverage additional cash flow by extending payment terms and forecast for the
future.
A
Fully Functional Procurement Process Can Lead to Greater Efficiency and
Preparedness
Many view the procurement cycle
as a one-dimensional process within an organization. However, procurement, when
it is adopted widely within an organization, often leads to greater efficiency
and provides for a better match with desired goods or services. An optimized
purchasing process will lead to more efficient sourcing – quality goods and
services delivered on time.
An up-to-date procurement process
will also ensure that an organization’s supply chain will be able to capably
navigate through any unforeseen roadblocks (financial problems, natural
disasters, labor shortage/surplus, economic volatility). When optimized, an
efficient procurement process will also help in distinguishing between
successful vendors from underachieving vendors.
Being able to distinguish between
quality vendors will not only improve your supply chain overall but might even
lead to compensation from the low-quality vendors from failing to deliver
within agreed upon parameters.
An Empowered Procurement Process Will Allow for Innovation
Businesses are constantly being
tested by their competitors – either on price, quality of good or service, or
convenience. Any competitive edge might be the difference between a new
customer and a lost sale. A progressive procurement process will allow an
organization to seek out innovative products or services.
An organization with an entrusted
purchasing process will enable the sourcing of those innovative goods and
services in the hopes of securing a competitive advantages. In some cases,
solidifying (empowering) this function might even yield exclusive deals with
suppliers.
Improving the
Procurement Process
An effective procurement process
will improve an organization’s bottom line and increase efficiency. But, the
evolution (improvement) of a procurement function does not happen in a vacuum.
Providing your team with the right procurement tools enables them to improve
upon the current procurement process is critical.
Source: Procurement Sense
Hence, COMFORI would like to invite you!
SBL KHAS: Best Practice in
Procurement Management
Date: 9th & 10th
January 2016
Venue: Istana Hotel, Kuala Lumpur
Who Should Attend?
·
Buyers in service and manufacturing or office purchasing agents
·
Purchasing Executives and Managers
·
Logistics Executives and supervisors
·
Manufacturing Industries Executives and supervisors
·
Stock or inventory controllers
·
All those involved in logistics work
Objectives:
·
Enable the participants to know the basic principles of
procurement
·
Enable participants to identify the various types of procurement
methods
·
Become a more efficient and productive buyer.
Contact us to reserve your seat!
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