The biggest spending department for any business is the Procurement/Purchasing department, it is for this reason businesses need to have the right procurement concept in place, including the right external procurement support. Whilst a purchasing department can be one of the biggest outflows of funds to a business, it can also generate the biggest cost savings.
Improving procurement productivities, reduce overspend and increase bottom line profits should be the main drive of any business.
Here are 3 simple services available from GPC to assist businesses achieve their goal.
1) Subcontract/outsource the purchasing function and management of low value low risks items. if you would prefer spending more time sourcing and managing important expenditures including high-value high risk items beneficial to your business than this is an option worth considering.
Many years ago, I was asked by Santos to manage all their low value and low risk items which came to just over $10 million annually. Doing so gave them the opportunity to concentrate on the high value and high-risk items resulting in substantial savings to the company annually.
2) Use offsite services and outsource your end to end daily routine purchasing activities, if you are serious about cutting costs whilst retaining high standard efficiency. This option will cut overhead costs and increase bottom line profits that can be well in excess of $50,000.00 per annum, not including the savings generated from purchases, or by not having to pay the high fees of a recruitment agency.
3) Outsource your entire procurement functions. this is no different to outsourcing your bookkeeping or accounting needs. In fact, 100% of Australian businesses outsource part of their business needs, whether it be marketing, recruitment, legal, printing or freight, so why not outsource procurement and purchasing?
At GPC we steadfastly rethinking traditional procurement and supply chain functions. By going beyond the traditional tactical procurement processes with a hands-on approach we assist client’s and their procurement team with their day to day purchasing needs