Saving money in the procurement world can be quite challenging. It lacks the coupons, Black Friday sales and new customer promotions that many of us enjoy in our everyday consumer lives. But that doesn't mean big savings aren't possible for the savviest of procurement professionals. You just have to get creative and have such mastery for the terrain that you know every nook and cranny that might have a couple of shekels waiting for your discovery. Purchasing & Procurement Center provides a great list of 16 Ways to Procurement Savings, drawing out directions to the money so you aren't sailing aimlessly like a drunken pirate without a treasure map.
A few of the highlights:
Know your supplier contracts inside and out. There may be clauses or opportunities for additional savings by carefully timed fluctuations in your buying patterns.
Consolidate whenever possible. That means suppliers, deliveries, inventory, purchasing functions, requests and most importantly, your time. If there's a little fat or inefficiency, trim it. Even if on the surface it doesn't appear to be directly linked to money, it will likely indirectly help your bottom line in the long run.
Do your homework on your materials and machinery. Could a cheaper input maintain the same specifications? Is there a method for obtaining the same material at a lower cost? Are you replacing machine parts too early or too late?
Follow these suggestions and you'll be swimming in procurement gold.
Looking for another destination for procurement savings? Check out the categories where you can save through Prime Advantage, a group purchasing organization for mid-level manufacturers.