All companies procure goods and services, from start-ups to companies with billion-pound turnovers. No matter how large or small a company is, the basic procurement processes are similar. A sourcing process entails identifying suppliers, negotiating and managing contracts, and monitoring the savings produced.
Compared to a small start-up, larger companies have more complex processes, which will take a lot more time to complete. In sourcing, for example, there will be a larger budget and more stakeholders and decision makers involved. In order to ensure consistency, transparency, and control over the whole procurement process, most companies have their own procurement processes with guidelines for employees to follow to ensure they get the best value from suppliers.
As with other areas within their businesses, many of these larger companies have invested both time and money into a digital procurement software to enable them to manage the procurement process in a way that will save valuable time and money and increase their profit margins.
The procurement process will be the same in a start-up, but it will be less noticeable as it will be something they do subconsciously to get the best value from their suppliers.
Manual processes can often open risk to losing control over procurement, resulting in losing money, wasting time, and damaging profitability. Companies can respond to this situation by setting up policies and procedures.
Most companies will concentrate on growing sales and hitting revenue targets much more than they will pay much attention to procurement unless it pertains to goods and services that make a significant contribution to the cost of a product or service. The company will miss the opportunity to save valuable time and money, as well as ensure they work with suppliers who share the same values as the company. In essence, they will probably lose some of their hard-earned money unnecessarily.
As the company expands, the procurement process might be managed using spreadsheets, calendars, and shared drives. The methods used to manage client relationships were widely available and affordable before CRM systems were widely available to small and medium-sized businesses.
In addition to the processes and desired outcomes, the budget and return on investment, as well as employees’ willingness to use the solution, are factors that companies should consider before investing in a digital procurement solution. Considerations can vary widely from company to company and also depend on a variety of variables, including how much the company spends under contract and the industry they’re in.
Introducing oboloo, a digital procurement solution designed especially for small to medium-sized businesses. oboloo is an intuitive and simple self-service platform that gives consistency, visibility and control over all sourcing, contract, supplier and savings management. oboloo enables companies to be supplier smart. To learn more please visit www.oboloo.com.