Allow purchasing staff to focus on key suppliers, freeing up valuable purchasing resources with no loss of functionality.
This service is not suitable for all businesses
Businesses with a turnover in excess of £50m will benefit from this service
These businesses usually have supplier reduction a KPI
In all organisations, the purchasing department is tasked with ensuring the correct products/materials are available at the right time for whatever process the organisation undertakes
It is also tasked with negotiating prices to ensure stable or falling costs and the contractual control thereof
Typically, 80% of the value of inbound purchases represent the core, business critical elements of the company’s activity. In many cases these business-critical products, come from 50% or less of the company’s suppliers
The hard-pressed purchasing executives do not have the time to properly focus on their prime remit, but usually are able to ensure the company does not run out of paper Clips!!
The traditional method for doing this is to encourage key supplier to take on parts from a supplier which has been identified for deletion from the company’s supplier base
This is time consuming, costly and ultimately damaging as it affects the key suppliers focus
We have a tried and tested methodology for reducing the company’s supplier roster with no reduction in supplier response times and in many cases a reduction (which we share 50/50 with the business concerned) in the piece part price as we are able to leverage quantity discounts that the company’s stock parameter makes virtually impossible
If you need to reduce your supplier base with the minimum of disruption, allow your purchasing department to focus on improving your bottom line and give other company department more freedom, give us a call and may be able to give you a different perspective