There is so much more to procurement than simply purchasing goods and services. Of course, this is a huge part of the role of a procurement partner, but those who bring success to operations are the procurement partners who continuously work hard to ensure that ALL operations run as smoothly as possible.
Maximising performance, including costs and procedures, with the right procurement partner, you can ensure you have the necessary supplies available, create cost savings, improve service delivery, and create organisational stability.
They establish requirements, research the market, evaluate vendors, negotiate contracts, and manage risk – ultimately, procurement partners add value to your business.
But the big question is…how?
How can a procurement partner boost your operations?
Identify the products that need to be sourced
Identifying, selecting, and managing multiple suppliers for a specific product or service takes a lot of skill, time, and experience.
Procurement partners have in-depth knowledge when assessing supplier capabilities, areas of expertise, and product ranges, cutting down considerable time in sourcing what you need when you need it.
Select the best suppliers in the market
A professional procurement partner will already work with a good selection of pre-vetted and trusted suppliers, making sourcing the right supplier for your project a piece of cake.
Working with suppliers with the right equipment, technology, and processes for you will make you more competitive, reduce your costs (procurement partners hold a lot of buying power with suppliers, with savings they can pass on to you), and help you to implement effective cost management systems throughout your supply chain.
Ensure effective development routes for new products
Developing new products is vital to keeping your business fresh and relevant.
Businesses can take various development routes when launching a new product; knowing the most effective route for you is very important.
The data gathered from supply chains and internal sources help to provide insights that can be turned into strategies to drive revenue and increase efficiency. In this respect, good data allows you to understand further product development, packaging, routes to delivery, and more.
An experienced procurement partner will help you gather this data and provide the insight required to make the development process smooth and effective.
Protect cost structures and negotiate the best terms and deals
Procurement partners are renowned for their first-class negotiating skills – negotiating better pricing with suppliers to lower your overall spend and build strong supplier relationships that bring numerous benefits.
Benefits such as higher quality with enhanced quality control built into all stages and more reliable delivery schedules, with penalties and late charges built into contracts.
This protection of cost structures helps you with the risk management element of procuring products overseas. It allows you to make more informed decisions on how and where to allocate additional resources best, making data-driven decisions that will enable you to optimise your inventory management and meet customer expectations to improve the overall customer experience.
Monitor market trends
Having a team on your side who monitors trends and stays ahead of the curve allows you to uncover hidden opportunities for your business. Opportunities that can increase efficiency, productivity, and innovation.
A procurement partner will present these opportunities to you as well as respond to your instruction, as they can quickly identify and assess new suppliers in new markets so you can jump on new opportunities faster.
They also help to mitigate risk, identify improvements in your supply chain, optimise value, and ultimately help your business to thrive.
Keep you compliant
Reputation is everything, and lack of compliance can end a business before it even starts.
Product testing and certification are vital to successfully putting a product into any territory.
A goods procurement partner will have knowledge about your product as well as links to experts and testing houses. This will help to keep the cost of compliance low but still ensure your product is correct for your chosen market.
Regulatory consultants who specialise in UK product compliance and regulations can further support you and help navigate compliance complexities effectively; it’s important to note each product will have a different set of rules, which, if you don’t comply with them, can result in legal and financial consequences.
Getting product compliance wrong at this stage can lead to products being held by border forces on arrival or seized by trading standards.
Areas of statutory compliance include:
- CE Marking
- UKCA Marking
- Product Safety Regulations
- Product Testing
- Technical Documentation
- Risk Assessment
- Labelling Requirements
- Authorised Representatives, and
- Recall Procedures.
Further to statutory compliance, there may be market requirements specific to your product. For example, ensuring modern slavery statements are in place and followed, overseeing ethical audits (SEDEX/BSCI), and ensuring good management processes are followed (ISO9001).
All of these are important to successfully growing a product-based business.
How a procurement partner can boost your operations
Effective procurement goes beyond sourcing products and services. It incorporates all of the above and more to support businesses’ long-term objectives to scale and grow operations while at all times managing risk.
Achieving raw materials to shelf products in the most cost-effective and time-efficient way – contact GHL Procurement today to see how we can boost your operations.