In the private sector, industrial procurement is viewed as a strategic function working to improve the organization’s profitability. Procurement is seen as helping to streamline processes, reduce raw material prices and costs, and identifying better sources of supply. In essence, helping to reduce thebottom line’. Indeed, in many organizations the importance of procurement is recognized by having their head of procurement placed at an Executive Board level.
Standard procedures guide you through the different stages of the procurement process. You can identify whether the process is progressing according to the plan by comparing it to the standards and make changes as necessary within the margins they define. The use of standard procedures helps you evaluate the contract-awarding process, for example. Adhering closely to such procedures enables you to avoid such errors as failing to notify suppliers about the rejection of their bids.
Strategic Sourcing in Supply chain
Strategic sourcing is an approach to supply chain management that formalizes the way information is gathered and used so that an organization can leverage its consolidated purchasing power to find the best values. It serves as a roadmap to procure the goods and services the organization knows it needs ahead of time, allowing procurement managers time to find the best price, instead of waiting until there is an immediate need.
“Strategic sourcing can be the bedrock for deep change within a supply chain that leads to better financial gains…” writes the Strategic Sourceror.
“With all of the necessary tasks facing an organization, improving procurement and sourcing practices is the effective way to work toward better business.”
By planning ahead with a strategic sourcing setup, procurement leaders can not only get the best price, but they also can ensure that they purchase the exact goods-services they need from suppliers that meet their quality and delivery requirements. While this may seem like a daunting process, strategic sourcing software and strategic sourcing services can make the process incredibly easy.
Industrial Procurement & Supply Chain
Industrial Procurement must never be an afterthought in any enterprise. Manufacturers need to have the right raw materials and supplies available. Supply chain entities need to know vendors will be held accountable and adhere to the terms within vendor-supply chain partner service level agreements.
Supply chain professionals must also know how they will be shipping freight. In other words, shippers need to know how they will be getting enough trucks to fulfill their orders.
The complexity of global industrial supply chains exponentially increases their risk. On average, an auto manufacturer has around 250 tier-one suppliers, but the number proliferates to 18,000 across the full supply chain. Aerospace manufacturers have an average of 200 tier-one suppliers and 12,000 across all tiers. Finally, technology companies have an average of 125 suppliers in their tier-one group and more than 7,000 across all tiers.
With all these scenarios and the changing industrial environment, PRISMECS provides a holistic solution for all your engineering needs. We have worked in some of the world’s toughest industries. We have a huge international clientele, for whom we have worked to provide industrial solutions. PRISMECS has worked to reduce their procurement and supply chain budgets to its maximum. If you want to explore more about PRISMECS contact us at +1 888 7747632 or email us at sales@prismecs.com. We are here to help. For more information visit our website www.prismecs.com.