When raw materials prices are on the rise, charging higher prices might at first sight appear a quick and attractive solution. But the true skill of a good purchasing department works at a higher level: over the long term it builds up an intelligent network of “best bidders”.
As in any good partnership, it is the balance of mutual give and take which engenders a sense of loyalty. For this you need clear structures, straightforward processes and an extensive cost awareness culture throughout the firm. Purchasing then becomes an exciting interactive scenario, where the volatility of needs, the volumes and the lead times determine the pace.
EFFICIENCY IS INTELLIGENT PURCHASING.
CASE STUDY PURCHASING EFFICIENCY
Natural growth generally entails an equally natural reordering of structure. As speed picks up, the time available for reconciliation of items naturally decreases. An initial resource for our building supplies’ client was the introduction of an intelligent functional strategy to help all those involved and make the work easier. The result is that there is even more time left for more growth. And profits. The new purchasing structure paid off the consultancy costs within just six months. (>Download case study)
Building supplies group
Growth over recent years
Established process structure
of a structured information culture: Consultation and agreement on strategy > partial consultation and agreement > itemised process stages
- Quick analysis of the key process and quantification of the problem areas
- A structured process was created in consultation with the individual product groups.
- Implementation is secured via clear specifications.
- Reviews were undertaken to check implementation had been fully completed.
- Payback within 6 months