In today’s globalized market, finding the right suppliers to meet your demand can seem like an impossible task. Thankfully, there are procurement consulting firms that can assist you in your global search to find the suppliers you need who will provide quality service at an affordable price. Here are eight tips to help you optimize your supply chain using services from procurement consulting firms.
Understand your process
First and foremost, your team needs to understand what they’re dealing with. This is where procurement consulting firms can help. Large organizations often outsource their procurement process to such firms because it’s easier for them, and helps streamline overall business operations. Outsourcing requires aglobal procurement service partner, who will engage with your company on a daily basis as you work towards optimizing your supply chain.
Automate processes
Implementing an ERP system is one of your best bets for streamlining your supply chain and boosting efficiency. But if you want to take things a step further, consider leveraging a global procurement service that can help you automate processes, increase visibility into expenditures and inventory levels across borders, and more. It’s worth noting that outsourcing doesn’t have to come with a big price tag; in fact, many procurement consulting firms offer flat-rate pricing packages so you know exactly what you’re paying for.
Standardize with EDI
EDI is a global supply chain management process that allows you to quickly and easily communicate with your suppliers. By utilizing EDI, you’ll be able to get access to key information like inventory levels, new product additions, and other shipment tracking data. Plus, if you outsource procurement services like sourcing or procurement consulting firms do, you’ll be able to share all of your contract data through EDI as well.
Use the right software
If you’re looking for cost savings and efficiency in your supply chain, leveraging a global procurement service (GPS) may be your best bet. A GPS offers purchasing teams access to suppliers that are local, regional or international and can provide up-to-date pricing, order status and delivery information. Because they offer many of these functions as a cloud-based system, they also make it easy for team members from different locations or across various organizational levels to collaborate on a given order with relative ease.
Evaluate vendors based on quality, not price
Global procurement services will help you identify those vendors with a proven track record of great quality. In fact, when it comes to cheap, broken or substandard products, there’s really no such thing as saving money—it all just leads back to wasted time and energy that could have been spent on something more valuable. Be sure that you choose vendors who operate with high standards and competitive pricing. This can save your company a lot of money in the long run.
Source from multiple suppliers
Always look for ways to diversify your sourcing, especially if you’re still young in your business and don’t have an established network of suppliers. You don’t want all your eggs in one basket! Make sure you research products and suppliers thoroughly before committing yourself, but do be aware that once you find a supplier you trust (and who delivers good quality), it can make sense to stick with them as long as possible.
Reduce transportation costs
You can reduce your transportation costs by using a third-party logistics provider, who can consolidate freight loads and schedule multiple deliveries at once. This saves you time and money, because you’re not driving from one location to another in search of shipments. It also reduces damage, as drivers won’t be hitting potholes or getting speeding tickets on their way back from unloading at various sites.
Minimize stock-outs
Ensure that you don’t run out of products or supplies before they’re needed. Identify your most popular items and make sure you have enough inventory for customers’ needs. If not, consider creating a waiting list until more stock arrives. After all, if an item is out of stock, a customer may look elsewhere to buy it.
Conclusion
Planning your supply chain isn’t easy. But it’s a crucial part of any business, no matter what industry you’re in or where you’re located. If your company is still handling everything by hand, consider investing in logistic app development —it might be more cost-effective than you think.
