Purchasing Tips to Improve Performance and Boost Your Revenue
Jun 05, 2021·5 min
In the world of online retail, e billing and e-commerce, goods are moving faster than ever. This adds an added responsibility to purchase managers who are in charge of kickstarting the supply chain. Unless your knowledge of the procurement process is thorough, you cannot make incisive decisions to return a high ROI while ensuring competitive pricing. That’s where effective vendor management and supply chain data can play a vital role in the p2p cycle of procuring goods. The best ROI comes from the purchase manager and his awareness about procurement SaaS and automation.
In this post, we’re going to touch upon a few points on how to boost the performance through purchase decisions. No matter how big or small your business is, you can surely benefit from the many advantages of e procurement.
Let’s get started with a few expert tips from Procol, the next generation engine that boosts your sourcing strategy for effective contract management and procurement. Whether fintech or FMCG, the industry is yours when you have a sustainable and optimum choice.
More businesses are adopting an omnichannel approach to their services and offerings, making it easier for consumers and employees to perform actions conveniently. A centralised interface where all your vendor management and auction strategies are displayed is key to supply chain efficiency.
Every purchase manager knows the relevance of strategic planning for strategic sourcing. Identify suppliers based on metrics that reinforce price, quality and delivery history. That way, your e procurement process is a competitive business model for others to follow. In the event of a market fluctuation, your specialised procurement will prove a vital tool to maintain revenue generation. Using e billing software, you can maintain all records and streamline accounting with the latest fintech tools.
Quality over quantity
One of the mantras that every purchase manager of the 21st century adheres to is reassuring product quality. While your contract management and vendor development may open up new doors to getting the best deals, be sure that your commitment to quality is maintained.
In today’s tech-driven ecosystem, quality products are the cornerstone to every purchase manager and vendor relationship. The relationships with vendors in the industry determine how the manager helps lower costs with efficient purchase and give greater ROI.
Locally sourced products
Depending on your business model, consumer behaviour and vendor development, you can aim to invest more in locally sourced products. The chances of a winning auction strategy are higher when your corporation can invest in local products. Besides, the cost-savings with locally sourced goods are a bonus for any company, especially when they have an efficient supply chain in place to meet the demand for quality.
Building long-term relationships with vendors
The most integral duty of a purchase manager is the ability to foster relationships with vendors. Through effective contract management, strategic sourcing and a procure to pay process, you can make the most of your ties with vendors that are key to your supply chain operations. Studying their terms and valuing their quality delivery of goods, will make your relationship an indispensable asset for business growth, by streamlining purchasing.
In many cases, when business slows down, purchase managers tend to outsource their purchases to third-party consultants and agents. This practice is also a great market research methodology. Sometimes, the third-party purchaser may land a deal that rekindles your supply chain ergonomics.
Just be sure to have everything on record with an effective e procurement platform, to source quality goods and maintain effective vendor development in the p2p cycle.
Real-time demand data for supply chain efficiency
Especially with fast-moving-consumer-goods, the real-time demand plays a vital role in supply chain management. If you either stock up on too much of resources, or duplicate products in the inventory, your business will face the consequences in the future. As purchase manager, real-time demand forecasts and expenditure are key results to monitor. By streamlining purchasing, you can make the right move at the right time to get the business towards an increased revenue stream.
At every stage of contract management and vendor development your procure to pay process should be based on data-driven insights that are a solid foundation to your purchasing and procurement deals.
Negotiation is a performance booster
When your long-term ties with suppliers begin to reap rewards of working together, it’s normal to forego certain formalities. However, every purchase manager is still the negotiator with a direct link to the vendors. As your duty, feel free to keep the discussions alive and cut costs in the procurement process as much as you can. Besides, a steady communication channel with your vendors will open up new opportunities as your business grows.
After all, an inclination towards profitability will surely return the best investment and performance.
Bonus tip for decision-makers
Never compromise on operational efficiency
Operational efficiency is the way you acquire contracts, manage vendor development, streamline the supply chain and account for every penny that goes into the procurement process. Although you may arrive at numerous contracts that can cut corners and save costs, you have to be mindful of the end-user. Are they going to benefit from the decision you make? You must be aware of the operational efficiency impacted by the quality of your choices. The purchase manager is the strongest link to profitability for any business and if your auction strategy fails, try again.
While you educate users about the role of tech-driven insights into purchasing, you ought to keep your eyes out for the next best opportunity to scale up business operations.
Procol is the trusted procurement management and sourcing platform for businesses. With advanced analytics and a smart interface for user-friendly interactions, you can generate maximum output with minimal effort. Everything you need is in one place, and all your purchase decisions are well-organised, well-informed and well in advance.
If you enjoyed reading about our tips to improve your supply chain performance by making the right procurement deals, you’ll be happy to know that Procol can get all of that done in time, and extremely cost-effectively. Click here to go through our case studies that will give you an insight into the performance-driven culture that Procol endorses globally.