We’re all used to hearing about how important it is to have a solid and efficient procurement process, but not every business owner has the sense to act upon it. A good procurement process doesn’t just make the lives of your procurement team easier, it’s something that filters down into other areas of your business, enhancing communications, your spending and ultimately, improving the overall customer experience.
Having good procurement practices in place stabilises your business spending, your financial foundations and it provides parts for electronic components efficiently and reliably. Does your procurement process leave a lot to be desired? If so, you’re at risk of severely damaging your business. Read on to find out more.
Issues with product quality
If you’re sourcing your parts from multiple vendors, with a cheap price in mind then you may not be aware of the quality of your selected components. All electronic components must meet the required and regulated standards of your selected industry, meeting compliance and certificate conditions, no matter what part you’re ordering. Poor quality parts spell disaster for your business, not only are you more likely to experience customer complaints and a lack of customer loyalty, but you’re likely to waste double the amount of money replacing these unfit for purpose parts.
A poor procurement process can mean confusion amongst your employees, order errors and unhappy customers. Without a streamlined approach, your entire business is susceptible to repeat mistakes, that could cost you customer loyalty and revenue. A strong procurement process means that everyone is on the same page, not just in your procurement team, but within your warehouse, on your production line and the shop floor.
One of the main elements of a procurement strategy is its ability to help you control your spending and keep within budget. When your process is muddled, outdated and out of control, you’re more likely to misinterpret your needs, overspend and essentially accumulate redundant expenses. A modern, efficient procurement approach brings clarity to your strategy and prevents you from overspending on your component parts, logistics and even reckless spending on the hire of multiple individuals to manage your confusing strategy.
Bad suppliers and poor procurement processes often go hand in hand. When you want to find the parts you need quickly, you’re more likely to reach out to the supplier with the cheapest option. Unfortunately, cheap doesn’t always mean great quality and you’re more likely to experience quality issues further down the line, as well as poor communication and broken delivery promises. A streamlined procurement strategy means developing a network of fully vetted and reputable suppliers, who value your custom and want to help you succeed.
If you want to push your business success forward, or you’re wondering why your growth has stalled, then you might want to take a closer look at your procurement strategy, and take positive steps to streamline your process.