Indirect Procurement
Indirect Procurement: The Way Forward
With the recent global economic downturn and financial crunch, companies have come to the realization that in other for them to ride the wave of recession and create a strategic competitive advantage through sustained cost savings and increase the available cash on hand, a change in the management of their internal spend is imminent.
Identification and usage of a viable tool for procurement and spend management has become a priority
We know that businesses can increase profit by cutting costs. During a global economic recession cutting costs can be easier to accomplish, the current global economic recession is forcing mid-sized businesses to reduce costs on a sustained basis and improve compliance with corporate purchasing policies. With most of the processes optimized, procurement is one of the few areas in an organization that still provides ample opportunities to reduce costs and improve bottom-line profits.
Indirect Procurement
Indirect procurement involves the purchase of goods and services that are not directly involved in the delivery of the end product or service. Examples of indirect spend categories include office supplies, IT hardware and software, consumables and MRO, contract labor, professional and administrative services, sales and marketing, facilities management and travel. Although indirect procurement is a high percentage of the total volume of transactions, various research reports have indicated that spend management solution usage have been a low priority in organizations .Until now many businesses use ineffective and largely manual procedures to execute their procurement process and manage suppliers. Indirect Procurement; Its Challenges and attributes
Identifying the challenges faced and gaps in the manual procurement process has enabled NeTPlus Advisory develop a spend management solution eSourcingng capable of tackling the challenges listed below; * A strong corporate requirement to
With the recent global economic downturn and financial crunch, companies have come to the realization that in other for them to ride the wave of recession and create a strategic competitive advantage through sustained cost savings and increase the available cash on hand, a change in the management of their internal spend is imminent.
Identification and usage of a viable tool for procurement and spend management has become a priority
We know that businesses can increase profit by cutting costs. During a global economic recession cutting costs can be easier to accomplish, the current global economic recession is forcing mid-sized businesses to reduce costs on a sustained basis and improve compliance with corporate purchasing policies. With most of the processes optimized, procurement is one of the few areas in an organization that still provides ample opportunities to reduce costs and improve bottom-line profits.
Indirect Procurement
Indirect procurement involves the purchase of goods and services that are not directly involved in the delivery of the end product or service. Examples of indirect spend categories include office supplies, IT hardware and software, consumables and MRO, contract labor, professional and administrative services, sales and marketing, facilities management and travel. Although indirect procurement is a high percentage of the total volume of transactions, various research reports have indicated that spend management solution usage have been a low priority in organizations .Until now many businesses use ineffective and largely manual procedures to execute their procurement process and manage suppliers. Indirect Procurement; Its Challenges and attributes
Identifying the challenges faced and gaps in the manual procurement process has enabled NeTPlus Advisory develop a spend management solution eSourcingng capable of tackling the challenges listed below; * A strong corporate requirement to