7 Ways The Procurement Team Saves More Money For Companies

Being a multi-skilled supply chain specialist has allowed me to work with great minds and save costs for my organization,

In a world where being smart with money is key to a company's success, no organization should underestimate the importance of a procurement team, I can tell you with all iota of sincerity that the procurement department is a group of unsung heroes making a big difference.

I'm excited to tell you about my journey with these heroes in the Procurement Department.

My story is about how we use smart thinking and careful planning to save our company a lot of money.

Let me share with you the seven (7) main ways we did this, showing the smart moves my team and I made to help our company's financial situation get a lot better.

1. Buying in Bulk:

You should think of making a deal with a dragon instead of fighting it...

That's how we work with our suppliers.

By ordering more stuff at once, we've made friends with the "dragon," getting big discounts without losing out on quality.

For example, by buying all our office supplies, spares, and consumables, together, we got a 20% discount, which helped our financial situation.

1. Negotiating Well:

Our team goes to suppliers with just facts and friendly faces.

Our secret weapon?

Facts and a way that makes everyone win.

We got a deal with trusted vendors that accept our payment terms and allow us to pay later without extra costs, this is a great boost to cashflow.

It's all about talking and finding a good deal for both sides.

1. Looking for Good Quality and Price:

 We're always on a mission to find the best quality things for the best prices.

We don't use a map, but we look carefully and never give up.

One time, we switched to a cloud-based tool for managing projects that was not only better but also 30% cheaper than what we had before.

This shows how we always look for the best.

1. Going Green Saves Money:

We take being eco-friendly seriously because it also helps us save money.

By choosing green ways, like LED lights and switching to solar energy in all our buildings, we've cut our energy costs by 40% every year.

1. Using Technology Smartly:

We use technology to make our buying tasks easier and faster, from making orders to checking invoices.

This tech help means we spend 40% less time on these tasks, saving money and letting us focus on bigger projects.

1. Working Well with Suppliers:

Good relationships with our suppliers mean we both benefit.

By working together on problems and new ideas, getting special discounts, long-term strategic partnerships, and even working together on volumes.

This has made our company and our suppliers better off.

1. Being Ready for Risks:

We always try to see risks before they happen and have a plan just in case.

Having different suppliers and plans ready, we keep our business running smoothly, even when things get tough in the market.

These steps are not just simple tasks; they're our way of doing great things and making ordinary buying into something special.

I hope this real-life story shows what we've done and shines a light on others in the business world.

To my fellow supply chain/procurement experts, our journey to save money and work smarter is always going on.

And for you reading this, remember, every time we save money, there's a lot of smart thinking and hard work behind it.

Let's keep sharing tips and cheering on the hidden heroes in buying and saving money.

Remember, little things count!

The procurement team has a lot to contribute to the survival of all organization .

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Thanks for reading

@sun