Tuesday 23 August 2016

Transformed procurement into a linchpin of an enterprise

Authored by: Usama Shahid  

Many top companies has transformed their procurement operations in profound ways to become a real strength of their company.

On the other hand many procurement departments are still struggling to adapt with strategic innovation strategies and to become strong pillar for their companies, Mainly because they remain trapped in the circle of old traditional procurement.

Working with leading organizations as procurement consultants, we have experienced that leading organizations are always ready to adapt with new strategies according to their industry challenge and achieve the future milestone that will make them leader in respective industry. This challenge adoption approach has makes these companies the best.

Convincing Supplier to Embrace eSourcing

eSourcing – or the process of tendering via the Internet is yet a concern in terms of managing supplier relationships. In the beginning of eSourcing, the concept was resisted by suppliers. They were aggravated by the thought that they shall get beaten-up over prices. Wise organizations communicated the advantages of esourcing to supplier. Here are some advantages which can help buyer to persuade suppliers to take part in esourcing bidding events:

1.     Improved transparency and delivering a clear framework can help companies understand supplier`s culture and how a company shall market their goods/services.

2.     Buying companies` mission, vision and values describes in RFP or eAuction benefits suppliers to understand company goals which helps to determine whether to do business with the buying organization.

3.     Communicating contract and product specifications, terms and delivery requirements take time for buyer to create a formal RFP and eAuction process which enables suppliers to prepare better for negotiation and contracting procedure.