Delivering Cost Savings and Efficiencies Through Effective Procurement
Effective procurement is a complex activity, which needs the devotion of expertise, time and resources to deliver value through to your bottom line. Procurement should not just tick a 'compliance' box. Instead, it should be ready to fulfil a strategically important role in the business. Is your procurement function ready to step up to this challenge?
Even during the initial stage of an outsourcing arrangement we frequently secure significant savings for clients; quickly lowering the costs of goods and services. Through a way that changes the relationship a business has with its suppliers. In essence, we redefine the role of procurement from support function to business partner.
"These immediate value streams help enhance margins, fund innovation and support growth."
Think – Every Successful Business will manage all aspects of their Procurement process from cost in use, product quality and of course at the right price and lead time. When analysed correctly TDB can usually offer immediate benefits and cost savings to your business that offers efficiency in your consumable procurement.
Why Outsource Low Value Consumables and One Off Supplies?
- Client procurement department can concentrate on strategic spends and manage a Supplier who can leverage non-strategic spends.
- Client's transactional costs are expensive.
- Supplier understands low value marketplace and can ensure correct supplier is used to purchase goods.
- TDB maximises its buying potential through strong supplier relationships and combining our client's needs to obtain better prices for our client's.
- Client's procurement needs to be seen as a strategic activity, not an administrative burden.
TDB's formula for success is based on leveraging an external service provider's/Suppliers economies of scale, expertise and scaleability of resources, enabling the buyer's enterprise to accomplish new things or do things that were too expensive internally.
The benefits of procurement outsourcing
Improved pricing and cost reduction is a prerequisite in any successful procurement outsourcing arrangement. However, key staff being allowed to re-focus on core activities allows your business to go in the direction you decide. Beyond this, further strategic benefits materialise as we provide clients with detailed market and supplier intelligence, driving more objective sourcing decisions that we ensure are aligned to the strategic goals of the organisation.
Outsourcing provides crucial visibility to clients on absolute expenditure levels. Maverick buying is a common problem meaning spend is frequently invisible or at best under estimated. The application of professional procurement expertise to specific categories ensures fragmented buying activity is removed and compliance achieved.
Reducing cost is only one side of the procurement story
TDB changes the way businesses think about buying products. Cost reduction is important, but so is transforming and strengthening the relationships between a business and its suppliers. What we do is not unique, but the way we do it, and the results we deliver are.