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An insight into perfect vendor management

Thursday, October 4th, 2018

All organisations around the world are dependent on vendor management; though the dependency may differ from company to company, it is the crux of a smooth work flow. Top vendor management companies follow a structured approach in respect of vendor selection, vendor management and vendor payments. An approach that sets the tone for how procurement solutions are handled holistically.

Payment is another important factor which influences how vendor management is structured and the top vendor payment companies in Delhi and NCR are especially paying special attention to this simply due to the sheer amount of work which the capital region provides in India.

The whole picture

If one were to look at the picture in its entirety, it is important to note that vendor selection is the first step to ensuring a hassle free structure and some step to remember during this process is understanding cultural diversity, organization structure, rate of change and the type of workforce.

If you are in charge of procurement in your organization or have employed an outsourcing company to take over your vendor management, it is important to ask vendors if they have the relevant experience for the work your organization needs done, if the staff has worked in an environment and addressed demands similar to what your organization needs. It is also extremely important to understand if the vendor management company is in sync with the financial structure that your organization follows so that delay in payments is avoided completely.

Importance of payment

Procurement functions mostly falter since payment in delays is not accepted by vendors and during urgent situations, it is difficult for an organization to meet the vendor’s cost demands. What also helps build a solid framework is the communication between vendors and organization – if the sourcing manager in your organization is not communicating the correct demands, there will be shortfall from the vendors which will lead to a grossly mismanaged procurement process.

What can organisations do?

Organisations need to understand what they want from vendors or if they have an outsourcing company under them, they need to communicate their needs to them clearly. Organisations can also create a separate financial structure for vendors which will be fluid and ensure there is limited delay in payments and the payment structure can be defined in respect to the various vendors and their payment cycles.

To understand more about vendor payment services, you can visit www.vpurchase4u.com or write to us at info@vpurchase4u.com.

Why Is It Important To Constantly Review Your Procurement Strategy?

Thursday, September 27th, 2018

An organisation’s procurement policy is the crux of operational efficiency. The difference that an intelligent procurement strategy can make to businesses is difficult to fathom. In light of the increasing need to perfect procurement functions and policies, organisations have started hiring top procurement companies to help them and enable them to meet their needs.

In the scenario that your organization employs an outsourcing agency to manage procurement functions, it is important to consistently review performances and ensure all organizational demands are met.

Another important thing to factor in is the cost of procurement – if your cost exceeds the input, it’ll lead to imbalance in company expectations and output.

What should you be reviewing?

Cost

For any organization, cost plays a very important role. From sourcing to vendor management to ensuring the company doesn’t face any issues due to procurement are some of the key areas where an outsourcing company comes to your rescue.

In terms of cost, it is definitely advisable to express and ensure budgets are not exceeded and also that budgets are utilized to their full potential.

Output

Another important thing to review is the output of the procurement function. If the output is drastically reduced and there is a noticeable change in delivery of goods, mismanagement of funds or a general stagnancy, it is a clear indication that the procurement strategy needs an overhaul upgrade.

Consistency

Consistency though is one of the most ignored factors, it’s an important measuring tool. To know what works and doesn’t work, it is important to consistently work with a certain section of vendors at a particular cost and then measure if it is working for you and your costs.

If you’d like to understand more about procurement management and its benefits, you can get in touch with our experts at www.vpurchase4u.com or write to us at info@vpurchase4u.com.

Outsourcing Procurement : Understanding Benefits

Tuesday, September 25th, 2018

As everyone in the business world in India is aware, outsourcing procurement has become a widespread practice. At the same time, it is also interesting to note the extent of skepticism surrounding the growing sector and how sourcing companies in India are tackling this uncertainty.

 

Procurement outsourcing companies need to understand the hesitancy from the end of organizations and organisations need to accept the huge impact sourcing companies can have on all business operations especially vendor management, increasing cash flow and managing tail spends.

Let’s take a look at the benefits of engaging a top procurement company for you organization:

  • Concentration on core business processes thus saving money, energy and time. It also allow the organisation’s resources to be free from additional stress of coordinating with vendors and tackling periodic payments.
  • Market intelligence which will lead to better cost management, better suppliers and a huge variety of goods and services at competitive prices.
  • Expert knowledge and guidance from procurement consultants
  • An opportunity to investigate and analyse the gaps in the existing system and hence improve upon the same
  • Negotiation benefit by vendor management experts in the field for more cost effective benefits
  • Seamless source to pay services are provided by most procurement companies which help in streamlining the financial system

The most important change however achieving operational efficiency across functions. From financial to resources management to tail spends, everything under a procurement sourcing company is streamlined and smooth. Owing to professional expertise, sourcing solution consultants focus on bringing maximum profits to your business with minimum input.

It may be argued that the reduced control on day-to-day services is a factor that hold back organizations from investing in a sourcing solutions company, but in the long run, the impact of loss of control is negligible. The procurement agency is focused on building customized solutions for your organization irrespective of the challenges faced.

Organisations in India are gradually understanding the need for a procurement sourcing company and are investing in the right place for their benefits and it is only a natural way to proceed. For organizations which are wary to give up control of their operations can proceed slowly. Sourcing one service from the gamut of procurement services and hence measuring returns might be a great idea for organizations who just want to test the waters.

To understand the growing role of procurement companies in India and how they benefit businesses, you can visit www.vpurchase4u.com or write to info@vpurchase4u.com.

What Are The Advantages of Procurement Planning?

Friday, September 21st, 2018

Procurement is an important part of business transactions for organisations around the world. The planning for procurement though depends on a number of factors which define a procurement plan for present and future needs.

Businesses around the world hire top procurement companies in an effort to perfect their procurement function and ensure efficiency in all related functions.

However, the question may arise why organisations shouldn’t procure directly and spend time and money for outsourcing? To put it simply, in comparison to both processes, outsourcing procurement is far more profitable. Let’s take a look at why:

Reduced costs

Direct procurement can lead to very high costs since an organization will not have access to the market intelligence that an outsourcing company will have. Also, direct procurement can lead to consumption of more time and resources which can be focused on internal company functions.

Another point to note is that organisations sometime need to make small scale purchase which will cost them much more than their budget. Additionally, vendors don’t offer one time discounts to buyers who buy sporadically whereas an outsourcing company will ensure that you get the price for the services and goods you need.

Quality standards

Let’s be real, it’s almost impossible for organisations to focus completely on the standard of goods when their core function is focused on bringing profits. This leads to a weak procurement system where standards are not as per the amount spend.

Let’s assume the quality of goods are not upto the mark for a period of six months, but the procurement function is overburdened and doesn’t realize the issue till it’s out of hand. In that case, finding new vendors in a budget which suits your organization becomes a difficult task.

Handling relationships

In a country like India, vendor and buyer relationship holds a lot of importance. In case of emergency or lack of quality goods or delay in payment, a healthy relationship with a vendor can last a long time. If you hire an outsourcing company, the company will be responsible for handling all relationships with vendors and will also insure they put in time and effort in researching the best vendors in fields related to your organization. The responsibility of vendor management, procurement, payment to vendors, market intelligence lies with the outsourcing company thus drastically reducing the burden on your organization.

However, before hiring a procurement company, it is important to analyse and investigate if your organization needs a procurement company at all. Once the organization has decided on a course of action, the procurement company will take over and work on actionable points.

To understand more about procurement and how it will benefit your company, visit www.vpurchase4u.com or write to us at info@vpurchase4u.com.

How Important is Supplier Management for Procurement Efficiency?

Tuesday, September 18th, 2018

Procurement managers are faced with unusual situations quite often. The very nature of their job entails an unexpected environment where changes take place abruptly and for the sake of efficiency, one needs to be prepared.

Suppliers are an integral part of the procurement system and a lot depends on the efficiency of suppliers and the services as well as goods they provide.

Most organisations grapple with the problem of unreliable suppliers, huge supplier costs and low quality of goods and services and hence forth invest in top procurement companies or the best sourcing companies.

The question then arises, what can be done to ensure that sourcing and in turn supplier management is a smooth, hassle free process.

Supplier performance

Analysis of supplier performance is the primary step to ensure an efficient supplier function. An organization that doesn’t periodically review supplier functions tends to regret it eventually. Supplier performance needs to be understood on the basis of quality of goods, timely delivery and cost effective.

If a supplier who supplies quality goods to your organization but charges an exorbitant price; is not a value addition to your procurement process. In fact in the long run, the vendor might be a liability.

Financial Analysis

From expected cost to actual cost, purchase price variance to vendor payment history are some key performance indicators of how your organization is performing.

It is important to review payment history to ensure that delay supplier payments are not taking up huge interests and the contracts that are made up are for the mutual benefit of both organisations and vendors.

It is also crucial to conduct a comparative analysis of existing vendors and draw up a conclusion of vendors that are performing and vendors that are not contributing to the holistic growth of the organization.

Considering the trend of changing business practices and the increasing popularity of sourcing solutions, businesses have begun to outsource essential functions in an effort to focus on core areas.

Using internal resources for management of sourcing, vendors and payments takes away from the efficiency of business processes and leads to an unbalanced organization framework.

The changing trend also owes its popularity to the success of outsourcing these functions. Studies have shown a marked improvement in the performance of organizations as well as ensured the implementation of a successful vendor management system.

If you would like to understand the benefits of sourcing solutions for your organization, you can get in touch with us at info@vpurchase4u.com or visit www.vpurchase4u.com

 

Supplier Management : How It Benefits Your Business

Thursday, September 6th, 2018

Supplier management is the core of a successful procurement strategy. Many big organisations make the mistake of assuming that supplier management is a seamless process which doesn’t require too much effort or planning. On both accounts, this doesn’t hold true. Supplier management companies in Delhi and procurement agencies in India concentrate on the core processes of your business and thereafter bridge the gaps between input and output.

Every process needs to be measured in an effort to understand its effectiveness. If a process isn’t functioning at its optimum, it’s doing more harm than good. Now, in respect to supplier performance, it can be measured both qualitatively and quantitatively. The measure differ from organization to organization but broadly are the same as – on time delivery, quality, price and cost. For a professional procurement agency, this is an inbuilt part of the analysis and report generation process, however it is essential to analyse, investigate and hence act upon the findings.

Expert advice

Procurement experts offer strategic advice and help you with all problems relating to sourcing, vendors and market intelligence. It is crucial to constantly analyse how and if suppliers can resolve problems, what is the kind and extend of support they provide and how much focus is given on new product development. Suppliers who understand the need of your business and fulfil it accordingly should be among your top preferences, though market research should be an integral part of your primary process.

Treat your suppliers differently

Suppliers are all different and it is essential for the procurement team to apply well-defined principles to ensure a strategic process is implemented for an efficient framework. Typically 20% of your suppliers constitute 80% of your indirect spends and it is vital to conduct periodic checks on your business. It will also greatly help your cause, if the suppliers you work with constantly device new plans to ensure the most cost effective processes for your organization.

For any business, new or established, the process of procurement is the most essential and should be enhanced at every opportunity. Be it a new market intelligence gathering strategy or a new set of products for which the organization needs suppliers – research, investigation and implementation is the appropriate way to proceed.

If you’d like to understand more about supplier management, procurement or source to pay, you can get in touch with our experts at info@vpurchase4u.com or visit www.vpurchase4u.com.

How Efficient Sourcing Solutions are Helping Businesses Worldwide

Thursday, August 30th, 2018

Sourcing has been the cornerstone of efficient business processes since time immemorial and with changing times, the landscape of the process is drastically undergoing a change. Considered to be secondary processes at one point, today the entire gamut of sourcing solutions is considered vital for business growth. Especially in a country as vast as India, sourcing solutions have become a value addition for businesses. Strategic sourcing solutions include procurement solutions, strategic vendor management and an intelligent system for smooth functional flow.

Sourcing solutions in India

The country is witnessing a transformation across industries and business practices. Ease of doing business is highly promoted and has become the end goal for businesses in the country. In this respect, though sourcing solutions is a comparatively new practice, but is picking up rapidly. Sourcing solutions experts are effectively providing intelligent solutions with far reaching impact to organisations and gradually more organization are jumping the band-wagon.

In a country like India where 60% of labour is recognized skill labour and the price of goods and services changes at every corner – market intelligence is gold. If your organization is completely dependent on vendors for goods and services, it is vital to hire a sourcing solutions agency to help you understand the many nuances of this dynamic industry.

Tail spend management

Mismanaged tail spends can cost an organization almost 20% of what could have been incremental savings. In the past decade, tail spend management has cost multi-nationals a huge amount of precious money owing to staggered processes, excessive paperwork and the lack of structure.

A sourcing solutions agency can drastically change the way an organsiation manages their tail spend and bring in a much needed functional change. Operational efficiency is the impact of an effective sourcing strategy and is marked by integrating neat processes in the over-all functioning of an organization.

Save money and time

The essence of money and time has been stressed upon consistently and the efficient utilization of both while concentrating on core business processes is a difficult task.

Smart procurement strategy, event management, simple source to pay solutions are key areas where sourcing solutions can effectively make a change and can benefit organizations holistically. The first rule before hiring a sourcing solutions expert is to first understand the needs of your business and how experts can help your organsiation. In conclusion, the framework of efficient processes is marked by an efficient sourcing solutions strategy.

To understand more about sourcing solutions, please visit www.vpurchase4u.com

The three building blocks you need for a procurement strategy

Friday, August 24th, 2018

Procurement is no longer a secondary, optional process. It gradually has risen to become a necessity for operational and business efficiency and has become a big part of an organization’s initial framework. Procurement is now not ignored as an additional cost-saving and efficiency-enhancing process but is THE way to move forward for growing and established businesses alike.

A comprehensive and forward-looking procurement strategy that encompasses and prepares a business for future challenges is ideal and what all organizations should aim for.

Align your goals
The first step towards building an intelligent procurement strategy is understanding and analyzingorganization’she organisation’s financial, operational and growth goals should align to each other and thereafter to the company’s vision holistically.

A centralized approach to govern your procurement strategy in line with existing weaknesses and strengths is very important; especially if it’s an established business. Established businesses often ignore existing processes and forget to review and revise what actually could be a stagnant process.

Allowing the creation of a process that is flexible enough to incorporate constant changes and is firm enough to bridge the gaps between existing and future goals is extremely essential.

Periodic reviews
It’s vital to consistently review all processes even though monetary growth is the only measurable yardstick. A procurement strategy which is based on performance measurables is the only way forward to ensure a value addition strategy.

Technology
The growth of technology has been witnessed across industries and has become a necessity for mere survival. Seamless processes, reduction in time taken and human hours are some of the prime benefits of a technologically sound framework. Integrate technology in your core processes to ensure there is reduced duplication of work, less chances of error and more return on investment in comparison to a human driven program. The assurance that comes with a technology driven processes is also a great selling point with organisations and assures them of an organisation’s dedication towards productivity.

To understand more about how an intelligent procurement strategy benefit your business, visit www.vpurchase4u.com.

How Can Benefit from Modern Sourcing Solutions?

Monday, August 20th, 2018

The primary objective for a company is to consistently increase its profit, expand and explore more opportunities. The objective can have multiple layers but in itself, it remains the same across industries – to garner more profit with minimum investment.

The business eco-system today is going through its fair share of changes and is discovering a system of efficiency that is positively affecting tail spend management.

Proving this fact is the rising popularity of sourcing solutions as a strategy to save money while maintaining operational efficiency.

Reduce:

Reducing the time taken for operational processes including vendor management, sourcing of goods and services impacts the over-all time and energy spent. Sourcing and procurement management need to be processes that don’t take from your core business processes but instead contribute to over-all growth.

Improve:

Review, analyse and make improvements to existing processes in an effort to bring more efficiency. Consistent vendor reviews, collecting market intelligence and sourcing at a reasonable cost are all steps one can undertake for long-term strategic planning.

Eliminate:

Eliminate processes that hinder your business processes and restrict your business from achieving operational efficiency. Processes tend to become clogs if not reviewed consistently. They are affected by both external and internal factors and need to be analysed objectively for them to have any long-term impact.

Outsource:

Outsourcing most of your processes will relief resources from undue burden and will drastically improve performances. The operational success of any organization is dependent on the utilization of two very crucial resources – time and manpower. If vendor management, which is an integral process of any business, is outsourced to experts, not only do you save money but also gather a huge market intelligence which didn’t exist before. The complacency of existing redundant processes is immediately traced and removed by outsourcing expects to recognize the needs of your business.

The need to recognize loopholes and close them with stronger processes is the need of the hour for any business looking for long-term growth. Short sightedness to save money leads to a series of processes which don’t benefit your business but instead create a circle of unending paperwork, approvals and tedious processes.

Sourcing solutions experts understand the needs of your business, the existing processes and the areas which need immediate attention. They bring seamless processes which promote transparency and accountability while at the same time saving money, energy and resources for the growth of your business.

To understand more about sourcing solutions and how it can help further your business, visit www.vpurchase4u.com.

The Three Essentials of Event Management

Tuesday, August 14th, 2018

Event management is an intelligent medium for advertising, announcement, promotions, brand launches and network building. Over the last decade, it has become a critical medium for organisations to make their presence known. Event management companies in Delhi and across India are devising new techniques for market research, event planning and management and rightly so since the medium is on an upward growth.

The why, how and where of event management are key questions which need to be answered for a successful on-ground event. Technology today has become an integrated part of event management and continues to grow in terms of development and execution. The stronger the technological aspect, the bigger the event.

If your organization is planning an event, it’s essential to understand the objective of the event and thereby the expected result. Saving time and investing energy in an event that will yield results is of prime importance along with market intelligence which will lead to tangible results.

How an event is conducted is another performance indicator and can make a huge difference between a good event and an event that yielded results. For example, an event for the launch of a new clothing brand will fail miserably if conducted in an open area with no trial rooms and no place to try the products. For all invitees, it is essential for them to witness the product in actual before forming an opinion.

Hiring an event management agency which will ensure all market research, vendor management and payments are conducted in a timely manner is half the battle won considering the maximum time is spent on the above. The objective of your on-ground event needs to be spelled clearly in an effort to ensure the success of the event.

Vendor management, procurement, market intelligence, market surveys are core areas of event planning which are addressed by an event management company to reduce the stress on your organization.

To understand more about how an outsourcing agency can help you with event management, visit www.vpurchase4u.com.

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