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Would it be time for sourcing take control direction of future?

Would it be time for sourcing take control direction of future?

Each industry has its own experts whether it’s matter of health care or automotive industry. Why procurement and the development of operational purchasing activities and the search for cost-savings targets should be an exception?

In previous blog I placed a proposal for future management point of view on procurement for automotive sector. Would it be time for sourcing take control direction of future? Please read more from the blog Time for indirect sourcing.

What procurement and Tenderit Ltd´s team can provide in order to increase cash flow

Please continue to reading so I will tell you more about for our approach to bidding process and the future way of better profitability. Did you know that in section of indirect sourcing same approach can be processed regardless of the industry?

How we can provide best solution in order to take control of automotive and it´ ancillary industries companies indirect sourcing?

Within our strong work history of automotive and deep sourcing knowledge.  

Steps in action to take over organization indirect sourcing

First step is gathering needed data and information of your company’s purchasing behaviour. Needed information we get from the account systems. Our aim is to organised data to indirect sourcing categories. If necessary, we can gather information of all the areas of procurement (direct and indirect).

From the Automotive companies point of view turnover are split to 80% brand supplier (direct sourcing: cars, spare parts, accessories) and 20% to indirect sourcing categories which support the core business. Our first step move in bidding process is make spend analysis (Chrystal ball).

After spend analysis we have created big pictures categories and find out vendors who have divided the cash flow. In order to move to step two and to taking of the procurement we need the Decision. It is very important in our point of view to make sure satisfied and pleased customer.  That´s why all the decisions we made to together with the customer. At the beginning of the bidding process we clarify the KPI measurements so of the end of the process we have needed meters to control the suppliers and created agreements.

We want to separate us from other service provider’s operational perspective.

We want to clarify that we are more than only simple expense reduction specialist. We are specialist for overall management of sourcing. Our service provides development of the overall operative activity and improve in future total cost of ownership with the vendors.  We will ensure this by creating the procurement processes to overlap the organization internal sales- and aftersales processes.

How you can clarify the differences between sourcing specialist and cost reduction specialist service. When our reduction specialist just gathering needed data and simple bidding new price and old terms and take cut commission from savings. We offered total service package from RFD (specification), market research, offer comparisons to contract & implementation. The most important in bidding process is that we make sure stability of the savings with the supplier’s management.

More information of the most important the supplier’s management

In order to stability the saving and improving to the total cost ownership we set up the steering group for every strategic supplier relationship. As told in the beginning of the blog we created needed specification, meters (KPI´s) for vendor cooperation and management model (e.g. steering group) before starting the bidding process. With this action we make sure that we have made thread for the journey.

For customer point of view there is a few service models from made the choice how to make sure proceeding with the supplier management.

  1. To let us to create an in-house model where we educate knowledge to chosen team
  2. As a service (outsourced Procurement as a Service provider model).

Would you like to hear more about plans for taking over the market of Finland’s automotive sector? Maybe even globally with needed partners!

Do you dare to dropping out your company out of the development, and to refuse to develop your organization’s business performance?

If not please contact to us asap!


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