Procurement and supply management involves buying the goods and services that enable an organisation to operate in a profitable and ethical manner. Responsibilities vary from sourcing raw materials and services to managing contracts and relationships with suppliers. Procurement is often responsible for up to 70% of companies' revenue, so small reductions in costs can have a huge impact on profits.
Source - Chartered Institute of Procurement and Supply (CIPS)
This process involves collecting, cleansing, classifying and analyzing your expenditure data with the purpose of decreasing procurement costs, improving efficiency, and monitoring controls and compliance.
This is a strategic approach which organizes procurement resources to focus on specific areas of historical spends. This enables the procurement function to focus their time and conduct in depth market analysis to fully leverage their procurement decisions on behalf of the whole organisation.
Sourcing is the process of developing channels of supply at the lowest total cost, not just the lowest purchase price. It expands upon traditional purchasing activities to embrace all activities within the procurement cycle, from specification to receipt and payment of goods and services. The typical sourcing process includes - creation of product specification, issuing request for information, issuing request for quotation, negotiation, supplier selection and supplier award.
A contract is a promise or set of promises that are legally enforceable and, if violated, allow the injured party access to legal remedies. Contract law recognizes and governs the rights and duties arising from agreements. We will work with you and a legal representative towards putting in place a robust contract covering all the main procurement clauses, KPIs and terms.