Companies in almost every industry want to ensure the most cost-effective decisions are made when it comes to making purchases. This includes finding the most efficient vendors, establishing mutually beneficial agreements, and delivering quality supplies in a timely manner.
Purchasing, especially for very large corporations, is not an easy task. If one major order is wrong, it could set back production in other departments by weeks and even in some cases, by months. Purchasing strategies that many purchasing and procurement managers use are procurement savings, centralized purchase processes, and establishing a core purchasing cycle.
Regardless of the size of the organization, it is critical to establish a core group of strategies that are analyzed and implemented regularly. A good purchasing strategy always includes a method of metrics and measurement to show which vendors and rates are in the best interests of the company.
For some of the biggest retail brands, ensuring sourcing offices in other countries has been a cost-effective measure. However, the need to maintain a competitive edge with other brands is fueling some purchasing decisions to include bringing some opportunities locally and setting clear guidelines by which savings can be met.
This whitepaper by Kepler Consulting delves into a proposed 6-step approach to establishing a purchasing strategy and aligning the internal organization with a standard practice for such purchasing decisions. Any company that establishes good purchasing strategies will eventually decrease costs, increase quality, and ensure deliveries are always on time.