Important Notes for Global Procurement Process
Any business that wants to reap the benefits of low-cost global markets needs to make a move towards procurement services. But there is a problem to start with. The problem faced by thousands of business owners is a lack of insight. In this article, I’d like to bring some important notes for global procurement process.
1. Suitable Procurement Location
One of the most fundamental decisions of procurement is the location/marketplace/country. Taking this key decision becomes easy with intelligent insights from a procurement service provider. Procurement agency professionals use advanced analytical mechanisms to study potential target markets. The market offering the best conditions and benefits is selected.
2. Manufacturing (or buy-in)
Are you sure that investing in a low-cost market will actually help you make considerable gains? What if better management and some tweaks can make manufacturing more profitable? Once again, this is a decision that should be taken with the help of intelligence consultants. They can conduct an analysis regarding both internal and external factors to direct your investments in the right direction.
3. Key Procurement Market Suppliers
Once a market is identified, the next step is to look at potential suppliers within it. Procurement intelligence professionals play an active role in this regard. They use their knowledge and expertise to identify, shortlist and evaluate the most relevant local suppliers. This step is necessary to ascertain that a supplier can actually meet your procurement requirements without difficulty. Leading procurement service companies are already associated with a vast pool of suppliers in key marketplaces.
4. Current Market Trends
Most businesses operate in a world where supply market volatility has to be factored in. Business owners should realize that a market deemed as profitable in the recent past might actually be impractical today. Changing trade policies, regulations, geopolitical factors, local strife etc., are some of the factors responsible for influencing market trends. Being in-the-know is essential to avoid unwanted outcomes. This is another aspect where intelligence solutions can help.
5. Key Supply Risks
No procurement marketplace is completely devoid of risks and that is very much a reality. Even the most successful procurement process can come to a screeching halt if adequate measures are not taken beforehand. A procurement service provider can conduct a financial assessment of suppliers, identify potential issues by creating should cost models, and implement risk management strategies to protect from external factors. Any risks, right from the initial stages of a process till products reaching you, can be predicted and avoided through intelligence.
6. Supplier Ethics
Suppliers should commit to more than just facilitating profitability for their clients. Abiding by international and industry standards, practicing ethical labor and safety norms and measuring up to CSR requirements are crucial. In an age where social media has made everything transparent, any leaks regarding malpractices can put your procurement operations in jeopardy. Business owners should depend on procurement companies to find out information regarding potential suppliers.
7. The criteria to find a procurement agency for your business are
a. Make sure that an agency offers solutions for businesses within your industry domain.
b. The agency should specialize in providing procurement-related intelligence solutions.
c. Your chosen agency should have good connections in terms of global supplier partners.
d. Get in touch with a reputed procurement company and make the most of your investments.