Nobody likes to waste, especially when it’s something we value. Whether it’s time, energy or a good meal, we like to get the most bang for our buck.
If you’re stuck in a two-hour, unproductive meeting, you probably don’t feel like you’re maximising your time. And think about the last time you threw out leftovers – you probably felt at least a little guilty about the money you were throwing away with it.
As consumers, we hate feeling like we’re leaving money on the table. So, why are we prone to doing just that when buying on behalf of our business?
Waste is an issue plaguing the procurement function, one that threatens efficiency and optimisation. Opportunities are missed when organisations don’t know where the money is going, or aren’t taking full advantage of the tools, resources and strategies available to improve their overall procurement performance.
How do you know if you’re getting the best value for the price you just paid your most strategic supplier? What if you’re missing opportunities for volume-based discounts because you don’t have visibility into what other departments are buying? Poor purchasing habits can end up costing the organization millions per year that could have otherwise been invested into strategic initiatives, or turned into bottom-line profitability.
In this article for My Purchasing Center
, Brian Miller, Vice President of Services at PROACTIS, shares how this can be avoided with the right strategy and approach including complex categories, reverse auctions and prioritising a well-rounded sourcing strategy.