• +91-9654729857 , +91-9811104040
  • |
  • atul.masih@ascgroup.in , ravi.ahuja@ascgroup.in

Archive for the ‘Procurement’ Category

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.

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.

Procurement: An Indispensable Function for Businesses

Monday, July 16th, 2018

Defined in simple terms, procurement is a strategic function to minimize the efforts of the organisation’s resources while at the same time increasing the organisation’s profitability. It is a strategic function to obtain raw materials, services or any kind of supplies essential for the organisation’s functioning without stressing existing resources.

This identification of potential vendors and the subsequent purchase of required goods and services is the primary goal of a procurement department or agency and one that makes all the difference in optimal functioning of businesses.

How to achieve primary goals of procurement

The primary goals of procurement is to obtain best services and goods at a suitable cost with an aim to increase over-all productivity. Outsourcing of this function ensures superior quality of goods and services at the best possible cost as well as the updation of market database and the knowledge of market changes and their impact.

As the business world undergoes a series of changes, it is time for organisations to review their current processes and update them to integrate new innovations.

The basis of an optimum procurement process is finding the right source at the right time at the best price in comparison to existing procurement standards.

Procurement for your business

While the standard rules of procurement apply across verticals and industries, it is essential to customize procurement processes according to the needs of your organization. Suppose vendors in Haryana are working at a cost much lower than vendors in Delhi, is it wise to procure from Haryana because the cost of transport would be similar to cost of goods or would it be sustainable to devise a strategy to achieve the best of both worlds?

Procurement consultants excel at strategy building in an effort to cut costs, create a viable database and ensure the best use of resources for maximum output.

Considered to be simply a value-added function, procurement in reality can lead to incremental savings and efficiency across business functions of human resources, finances and operations. Offering a better visibility into company spends and budgets, financial efficiency through procurement processes can hugely impact an organisation’s profit potential.

Preparing an organization for risks

A lesser known and mostly ignored impact of procurement is the ability of an organization to prepare itself for risks. Offering transparency into operational and financial functions, procurement also enable a business to take stock of its overhead expenditure and skewed financial processes.

To learn more about how procurement can lead to incremental savings, you can get in touch with our consultant at atul.masih@ascgroup.in

Recent Posts

Archives

Copyright @ 2018 all rights reserved

ENQUIRY FORM