To elaborate further on previous article, “Price focused Sourcing is bad for Business”, I have created a list of procurement hacks for realizing savings.
1) Audit invoices and purchase orders to identify unapproved vendor charges, price discrepancies, and unapproved purchases.
2) Audit vendor database to ensure accurate data, remove duplicate information and ensure vendor has proper approval.
3) Share sales demand and budget data with procurement team.
4) Share inventory data with suppliers and have them do the same.
5) Develop a quality plan.
6) Focus on total cost instead of price.
7) Build strong supplier relationships by working with vendors to improve quality, delivery and logistics; and encourage the use on long-term contracts with quality stipulations and year by year locked in prices.
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