Reducing costs that will have instant and lasting effects is crucial during these uncertain COVID-19 times of crisis where sales and turnover are under pressure in many companies. Even if your business is not suffering during this crisis you still can look for more opportunities to create greater cost savings, as you will have more levers to offer suppliers to gain reductions in return.
The future role of procurement will be to manage and collaborate with suppliers – not just cost savings. The reasons are many, but the key argument is that a narrow focus on cost-saving will actually cost you in the long run. Not many CFOs want to acknowledge this, but it is a fact that relationships matter when it comes to business, even for CFOs.
Electrocomponents is a global multi-channel distributor. They offer more than 500,000 industrial and electronics products, sourced from over 2,500 leading suppliers, and provide a wide range of value-added services to over one million customers. With operations in 32 countries, they ship more than 50,000 parcels a day.
Do you want to start a serious SRM program but don’t know how to convince your CFO/CEO about the investment needed? Then please continue reading.
Many procurement leaders have asked us how to plan and implement an effective SRM program. In this article we will present five key steps to ensure an effective SRM program is implemented.
Carl Ras is a Danish family owned wholesale business, which is one of the largest suppliers of tools and fittings for professionals, institutions and industry in Denmark. Carl Ras has 16 wholesale centers, and now comprises more than 350 dedicated employees.
Carl Ras wants to be the craftsmen preferred supplier. This requires their suppliers to deliver the right quantity at the right time every day.
Most medium to large size companies work with a huge number of suppliers, which fuels supply chain complexity. The number one mistake in procurement is that companies fail to properly manage their suppliers and the related external spend.
We are pleased to announce that DS Smith has chosen LeanLinking as their new supplier performance and compliance management platform.
The number one mistake that most companies make in procurement is that they do NOT manage their suppliers. Now what do I mean by that?
The ability to generate impressive cost savings is not what separates great procurement teams from the rest. Those who truly stand out are the procurement teams that figure out how to manage the value chain and hence also the suppliers and are able to return real value to the company and its customers.