In the work of developing the company's procurement there is a constant potential for improvements in the company's profitability. Initially on the cost side, but also very much on the revenue side.
At the strategic level, development opportunities (as well as “close down” opportunities) can be found where a thorough analysis will define a number of improvements. The segmentation of suppliers will enable the identification of new ways of engaging with them. Clearer policies will be available for the different categories to make tactical efforts simpler.
A strategic spend analysis will allow for a sharper prioritization of efforts in relation to the overall categories and markets. A market search could provide inspiration for new avenues and new opportunities.
When the strategic part of the procurement strategy is compared with the company's overall strategy, then it will be possible to secure risk minimization, supplier diversification, etc. as part of the foundation. The supplier relationship management plan will be part of the strategy, not least with well-worked-through plans for key suppliers.
At the tactical level, there is a great scope for improvement in almost all organizations. Priorities can be improved. Processes can be improved. Decisions can be made more data-driven. Supplier collaborations and supplier integrations can be optimized. Negotiations can be professionalized. Daily purchasing managers can be given extra earning potential if handled correctly. Pricing can be improved. In short: the possibilities are endless.
Have a dialogue with Brandculture about how the company can get help in starting a process to improve the procurement work of the company.