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cost effective procurement

Purchasing & Procurement: Top 5 Cost-Effective Tips

Handling procurement for different levels of a company may be complex, especially when you’re dealing with variable budgets and varying requests across the board. To help you keep on top of prices, we’ve compiled a list of our top 5 cost-effective tips on purchasing and procurement right here in this article.

Photo by Amy Hirschi on Unsplash 

1. Speed Things Up

Using online procurement platforms like Penny’s can help your company save time and money on procurement and lower costs as suppliers bid for your company.

Such a solution can help you standardize your procurement processes, keeping inter-team cooperation as simple as possible. Consequently, you can simply receive and compare quotations and determine which supplier provides you with the best deal based on your requirements.

2. Keep Track Of Suppliers

When you automate procurement procedures, you gain immediate access to a wealth of supplier data, helpful when cutting costs.

Procurement solutions, such as Penny, allow you to keep track of everything and measure how suppliers perform their contractual obligations to save money and reduce risks.

3. Evaluate Requirements

It’s critical to keep track of stock levels if you’re intent on lower procurement expenses. Simply put, if you don’t complete your orders on time, you’re squandering money on useless goods and storage expenditures.

When reviewing orders, keep track of the duration, purchase frequency, and other requirements. Keeping a close watch will help you see where you may save money by minimizing spending and wasting less.

4. Consolidate Deliveries

On a similar note, it’s always worth looking at how deliveries can be consolidated to reduce costs. When working with the same supplier, see if you can reduce the number of separate deliveries you’re receiving by grouping your orders into one single delivery, reducing cost and documentation. Many suppliers will also offer reduced-cost ‘eco’ delivery slots at times of the day/week when they’re most likely to be in your area.

5. Change Patterns

It’s always worthwhile to examine your purchase patterns with suppliers to see if there are any areas where you may save money. It’s possible that you’re utilizing two separate suppliers for two distinct orders when one supplier might handle both at a lower cost due to the larger order quantity. If possible, it may also be financially advantageous to order somewhat greater quantities of any particular commodity less frequently, as suppliers do tend to offer discounted pricing for bigger single orders.

Bottom Line

In this article, we endeavoured to provide useful tips that can help you save money and time on purchasing and procurement to stay ahead of the competition. One of the best ways to stay ahead of the competition is to utilize automated procurement solutions like Penny’s. We offer a wide range of flexible solutions that can fit your specific needs and goals. Please contact us and let’s get started!

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