10 Practices to Help You Learn How to Reduce Spend in the Procurement Supply Chain
Getting the required materials to keep up with the demands of production is the most vital part of the entire inventory network supply chain. If raw materials are unavailable, all subsequent processes are affected, which may result in increased costs to consumers and the respective companies as well. However, following these 10 practices can help you learn how to reduce spend in the procurement supply chain.
1 – Utilise Cloud-Based Analytics for Better Warehouse Management, Forecasting, and Budgeting
Cloud computing technology has allowed supply chain management providers to take advantage of a new era of processes, specifically those relating to the ethereal space. Traditionally, supply chain management has relied on physical, in-person processes. Take a look at how cloud computing technology impacts supply chain management concepts.
Cloud-based platforms offer many benefits throughout the procurement supply chain. Procurement providers will use cloud technology to improve visibility throughout the supply chain and adapt to changes and unforeseen issues in real time.
2 – Be prepared for any Natural Disasters by Diversifying your Suppliers.
Let’s face it, no one can be in control of natural disasters. There are only so many precautions we can take. Disasters are an inherent risk in the procurement supply chain. If the weather turns bad, obtaining raw materials may be impossible, and the effects of a single tropical storm can span many states. Rather than waiting for a disaster to strike, today’s supply chain professionals should focus on proactive planning. This will ensure all operations continue in the event of a natural disaster.
3 – Outsource Your Logistics Procurement To Ensure Quality Results and Cost Efficiency
Many companies are afraid of outsourcing as they feel a lack of trust or that they want to be in control of all the elements. As much as this is understandable, true savings and efficiency comes in when finding various outsourcing to third party suppliers (3PL).
Outsourcing procurement processes to the 3PL may be among the top ways to improve procurement in the coming years. 3PLs allow for better rate negotiations and overall management of procurement needs. At Dovetail, we specialise in the perfect integration of 3PL products and suppliers. View our full range of 3PL products.
4 – Address any Cyber Security Concerns in the Procurement Supply Chain.
Recently, Cyber security has become a major threat to the procurement supply chain. A security breach or computer hack could result in the theft of resources, diversion of monetary information as well as the loss of supplies. As a result, shippers and manufacturers must work to ensure existing e-procurement systems, including TMS platforms, actively work to identify threats to cyber security and mitigate risk.
5 – Use A Variety Of External Benchmarking Tools
Be aware that very often internal analytical tools can produce data that may cause the company to seem better than it currently is. It is always good to use more than one source for comparison to be sure that there are no discrepancies in your performance metrics. Very often, external benchmarking tools offer the benefits of reducing internal spend and accessing outside data, which further drives competitive advantage and lower spend in managing the procurement supply chain.
Contact Dovetail Business Solutions for the ultimate Supply chain software solutions and 3PL solutions in south africa.