Even at present, a large proportion of companies and their staff still use only standard procurement models, focusing mainly on the adequacy of material flows to their plants. An astonishing proportion of buyers and procurement managers don’t even see the products for which they are responsible, not to mention knowing them well enough to understand where the costs of the products come from.
Products are RFQ:d through traditional tenders or annual negotiations, if any. Alternative suppliers are not actively scouted, different subcategories and volumes are stubbornly driven into the same manufacturing pipeline.
If you analyze the workday of a purchase / procurement person, you may note that often at least three-quarters of it is spent on routine work. Why so? Because A: Routines are not automated or the current ERP does not sufficiently support automation, B: Insufficient level of competence and adoption of new operating models is uncomfortable and C: Fear for change and/or the inclination to keep oneself busy in one’s own comfort zone. D: The company’s procurement strategy or steering of its implementation is deficient or neither of them exist.
The solution is to analyze the current situation and human resource competencies, create a strategy (including goals) and guide its implementation, increase automation, develop human resource competencies and increase the company’s internal communication and staff’s influencing possibilities.
An excellent option instead of or in addition to doing it on your own is to use interim service. First of all, an interim manager has broad experience, brings a new perspective to the company and, if necessary, also does the things on his own initiative. The extra bonus is flexibility – you do not need an employment contract or long induction period to use the interim service. Instead you can use it instantly for hours, days, weeks or months – always according to your needs.
I founded my company in 2014 as I wanted to provide services to companies in the areas of business and procurement development and consulting. I have over 20 years of experience in international business and procurement with hundreds of companies. I have also worked in sales of sheet metal manufacturing and telecommunications. Sheet metal workshops and other industries have become familiar to me in Europe, Asia and the Americas as well.
In addition to business and procurement development and consulting services, we have developed a digital A1eValuator-should cost tool for sheet metal working. It helps companies to achieve their savings and product development goals. The data download feature enables quick analyzes and reports up to hundreds of items in just a few seconds.
DBC increases competence of its users, guides to negotiate about the right things and to choose correct supply chain as well enables even double-digit savings from the purchasing budget.
Check out the A1eValuator tool here.
We help your company in all areas of procurement. Contact us and let’s review your situation together and find the best solution for you.