Procurement Intelligence – Shaping the Future of Your Business

Procurement intelligence was traditionally associated with ways to reduce production costs. But nowadays, the information is being used in various other ways to improve overall strategies and increase the market reach of the organisation. Present day procurement intelligence goes extra miles to think beyond old concepts of cost management and help in optimising overall operations. It now incorporates associated areas such as risk monitoring with intelligence on how suppliers are performing in their respective industry, geography and competitve and ecosystem; and value addition by keeping a tab on how the procurement categories and supply markets are evolving. Analytical inputs in these areas can help organisations manage their supplier relationships to extract maximum benefits out of them. Today, Procurement intelligence is not only helping the management and the stakeholders but also creating a significant impact on the bottom-line.

How Procurement Intelligence Shapes Your Business – Key Aspects

• If you are planning to take your business to the next level, you should engage a procurement intelligence provider. As mentioned above, unlike the previous generation concept of using it only to lower overall costs, it is now regarded as one of the most useful and beneficial management techniques for leveraging commercial success. 

• Besides reducing costs, analytical commentary on supplier and market developments can help organisations determine risks associated with the entire supply chain. In other words, procurement intelligence services can help you in protecting your business from unplanned suply chain disruptions.

• Use the service to understand the current market status. Procurement intelligence can provide you trusted information on the local and global scenario. This information can help you to extract maximum value from your supplier relationships. 

• One of the best advantages your business can gain from procurement optimisation is pragmatic information on the market condition. You can immediately know if the market is volatile or in a downswing or upswing and amend your strategies accordingly. Most businesses succumb because of unpredictable markets. Taking proper measures beforehand can save your business from floundering or going under. 

Avail procurement intelligence services from a reputed agency to alert you of the potential risks. An investment in this direction will increase the efficiency of procurement department, many-fold by providing actionable insights and will help them react proactively to any underlying risks or opportunities.

Strategic Sourcing Intelligence – A Creative Approach for Enhancing Organisation Effectiveness

Any organisation that deals in products – whether it manufactures them or trades in them – has the need for pertinent actionable information that they can use to manage the supply chain. Where the products, spares or parts are to be sourced from is as critical a question as managing the overall operation and revenue cycle. Companies need to know of the most recent list of organisations, businesses, or people who can help them get what they want. They also have to be aware of the most recent rules, regulations, technology developments, macroeconomic data, etc. that will help them manage their enterprise in a profitable manner. 

Strategic sourcing intelligence is perhaps one of the most overlooked aspects for enhancing organisational effectiveness. Most companies focus on extraneous matters while they should be focusing on the core business. A business will save considerable amounts in resource costs, time, overall management costs, labour costs, etc. if they focus on doing what they are best at and leave the rest to the experts. 

Though it may not be possible to outsource the entire procurement process, companies can realise considerable saving opportunities if they let their team work with procurement intelligence firms. This will also reduce the time to find the products and identify new suppliers who can provide right products, at the right time, and at the right price. 

While the most important aspect of strategic sourcing is finding suppliers for new product or service requirements of a business, procurement intelligence firms also assist procrement teams in several different ways.  This may include a range of processes including specific pre-qualification checks that are dependent on a country’s laws and regulations or various other factors such as trade agreements, most favoured nation status, etc. Sorting through the responses for information is another part of the process. 

A good procurement intelligence provider will help its clients identify the right suppliers and help them run the RFX process smoothly. Helping understand the costs and finding ways to reduce the controllable ones, help in negotiation of agreements are some other factors that distinguish an expert procurement intelligence company.