Purchasing is running hot!
Material shortages, procurement problems, long delivery times: Purchasing departments currently have their hands full to secure the most necessary resources for production. Because the goods must get to the assembly line! Many buyers are caught in the procurement paradox: They act out of necessity – and this obscures their view of better solutions that are not only more effective, but also more sustainable. Three tips help to break the vicious circle.
1. Deep market analysis through digital tendering
Many buyers still source in the “classic” way: through their (referral) network or hand-picked individual requests. Most buyers are aware that this does not come close to representing a comprehensive market situation – but what alternatives are there? With an excellently maintained and comprehensive supplier database, broad digital invitations to tender can be issued, guaranteeing a high response rate with current market prices. Thanks to the right tools and process automation, this can even be done almost at the push of a button.
The market transparency gained not only enables new suppliers to be tapped – existing suppliers also receive a realistic classification of their contracts, including any need for improvement. In times of extreme scarcity, digital tenders are particularly helpful in uncovering previously unrecognized supply capacities – this way, not only supply security can be established, but also optimized.
2. Creative sourcing solutions
If a supplier is having trouble delivering, an analytical look can help get to the root of the problem: It may be that the real problem is an upstream supplier causing the bottleneck. If you help the supplier change the upstream supplier or close the bottleneck, the problem is solved. Or can the concern be changed in cooperation with product development if there is no solution? Material substitution and standardization of components can again provide a “workaround” that ultimately proves to be sustainable.
Further opportunities are offered by daring to investigate previously neglected sourcing regions. For some buyers, “global sourcing” still means “China sourcing” – but it is worth looking beyond the end of one’s nose to exciting regions such as Eastern Europe or Turkey. Southern Europe should also be considered as part of a best-cost country sourcing strategy.
3. Relief through external support
Many purchasing departments work at the limit even in quiet times. When the crisis hits, the desk is bursting with operational tasks – there is no time left for strategic decisions or even complete restructuring. From the buyers’ point of view, personnel support would be desirable here – depending on the situation, the management could be convinced of this by cost-effective outsourcing offers such as those from Kloepfel Services.
But if immediate help with deep expertise is needed, it is advisable to rely on temporary colleagues and coaches like those provided by Kloepfel Consulting. Success-based fees guarantee that optimization can only increase returns – otherwise no money flows to the consultants. This way, purchasing can be relieved risk-free – and the vicious circle of the procurement paradox is broken.
Is your purchasing department also stretched to the limit by the market situation, leaving no time for optimal sourcing? Then arrange a non-binding consultation appointment with us today. The appointment can take place by telephone or as a web meeting.
Contact:
Christopher Willson
Kloepfel Group
Tel.: 0211 875 45323
Pempelforter Str. 50
40211 Duesseldorf
Mail: rendite@kloepfel-consulting.com