Supplier Consideration Check List Outsourced Indirect Procurement by Gemma

Procurement Outsourcing and Our Supplier Consideration Check List

7th January 2019

What better time is there than to start looking at procurement with a fresh pair of eyes.

The list of considerations within the procurement process is continually growing and evolving. This is down to a changing ethos in and around the commercial setting but also due to the innovation that varying suppliers are unlocking within their offering.

Gone are the days of drilling the cheapest possible price or driving suppliers down to unrealistic (and therefore resulting in a diminished service) pricing and solutions. Or at least they should be.

Cost control and management is still imperative of course. Looking at costs in more detail can highlight several areas where both large and small companies are saving thousands of pounds per year for relatively little effort. And it’s a similar scenario for charities, that have the funding and donors coming in and savings are achievable to maximise how much gets diverted to the charitable ethos behind the organisation; keeping it lean is vital.

Supplier Consideration Check List

The ever growing check list of "deliver as standard" for procurement to consider includes;

  • Supplier Performance – Demonstrating honesty, transparency and accountability.
  • Safety Performance – On any area of indirect spend that deems this applicable.
  • Service Delivery - Hands-on implementers are just as important following a proposal.
  • Risk - Minimising financial, reputational, geopolitical and legal risks.
  • Efficiencies - Ensuring competitive, appropriate/ “best-in-class” processes are undertaken.
  • Cultural Fit – Similar ethos, values and partnership/ relationship mentality.
  • Price/Cost – Price and total cost of opportunity/ ownership.
  • Value for Money – Obtaining best value for money and value generation opportunities.
  • Quality and Consistency – Able to exceed your expectations time-and-time again.
  • Reliability – Delivering and implementing the right solution.
  • Stability and Experience - Years in business, minimising financial, reputational and legal risks.
  • Environmental Policies - Including, sustainability and performance.
  • Communication – If communication is poor, service delivery is likely to match.
  • Flexibility - Strategic, efficient and flexible service delivering on expectations.
  • Response to change – In business landscape, orders/ products, personnel etc.
  • Equal Opportunities and Diversity – “Best-in-class” solutions, products and practices regardless of anything else.
  • Ethics – The part of the supply chain with social values acting responsibility, ethically and sustainably.
  • Contract Negotiation and Management – Doesn't deserve to be last on the list but something has to be (you’ve probably thought of something else whilst reading this though).

  • The ever growing list that procurement needs to consider regarding suppliers really does beg the question, “why would you not consider a fresh pair of eyes (or many) and start working alongside a procurement outsourcing company?”.

    As with any form of purchase, of products or services, knowing you have the best option for your needs is paramount. Not only in terms of knowing the market as a whole but also knowing the choices available from varying suppliers. Let's be honest, who has time to contact every part of the supply chain and have an in-depth conversation about all solutions? Not many. Plus, what’s to say those solutions don’t change or evolve the next day? As an outsourced procurement solution, all of our supply chain partners keep us updated with every aspect of their offering.

    A fresh pair of eyes can often work wonders in realising not only additional areas of potential profit but also areas where impartiality is not being used. Allowing personal or emotive relationships to get in the way of what is best for the organisation rarely works (that’s not to say that the principles of Supplier Relationship Management (SRM) should be abandoned). Relationships are important, but you need to keep in mind the reasons for the connection in the first place; what’s right for your business.

    Outsourced Indirect Procurement

    By obtaining optimum value within procurement, you can devote as much time and resources as possible to your growth.

    There’s no denying that it’s hard to separate procurement from considerations such as cost. And why would you? But gone are the days where supply chain decisions are based on who you know rather that what THEY know.

    Managing indirect spend is so important to today’s businesses that many choose to involve a team of experts for decision-making, auditing and implementation. Procurement outsourcing constitutes a growing trend of corporate procurement strategies. In fact, research has suggested that major companies will likely expand the scope of procurement outsourcing in the coming years.

    Procuright provide outsourced procurement management to yield your expected benefits and our non-emotional processes deliver real savings and will stand up to any level of scrutiny and help you deliver the business case.

    We specialise in indirect spend management, cost reduction and procurement transformation projects. Our consulting program, featuring our team of strategic thinkers and motivated hands on innovators, drives our clients’ procurement to peak performance. If you’re aiming for long-term sustainable savings and achieving a more effective indirect spend portfolio then please get in touch with Procuright .

    "Procurement outsourcing constitutes a growing trend of corporate procurement strategies. In fact, research has suggested that major companies will likely expand the scope of procurement outsourcing in the coming years."