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Procurement and Profits
Procurement decisions can make a big difference to a company's trading profits. A bad procurement decision can undermine profitability in a surprisingly short time. Most managers in SMEs and large corporations alike know this instinctively yet they often lack a coherent policy for procurement. Through inadequate supplier information, poor advice or unrealistic planning their procurement costs can start to chip away at their profit margins.
Almost every decision in business has an element of procurement in it. Most business
decisions concerned with the development of new products and services entail the buying of goods and services and therefore this impacts on the procurement function. So procurement is a pervasive activity, and much more so than is generally recognised. A well-managed procurement function will support the attainment of higher profits.
Making Procurement Work for You
MCC has a wealth of experience in procurement. What MCC will do for you is to:
- review and improve the terms of your existing supplier contracts;
- advise on the appraisal and selection of future suppliers;
- provide you with contract drafts and templates;
- provide support in the negotiation of contracts;
- assist in establishing a dedicated procurement function; and
- MCC will also show you how to minimise your risks and where necessary we will advise on the insurance of them.
Underpinning these activities we can also help you to develop realistic cost reduction programmes so that you will achieve real, sustainable long-term gains. The aim is to make your procurement policies work for you and your business.
Keeping Costs Down
The secret of a good procurement strategy lies in its implementation. In order to succeed the procurement function has to have the support of efficient, easy-to-use processes and systems. It also needs to be comprehensive. The maintenance and repair of buildings, vehicles, the purchase of utilities and the costs of any ad hoc products and services all need to need to be included. So we will design the systems and processes that you need to support a cost-effective and reliable procurement policy and we will help you to put them into action. Keeping costs down is the object in view. MCC will show you how to do this. |
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