Upstream procurement is no longer just about ensuing best prices with new suppliers or conducing supplier performance reviews. Today’s supply chains have become global and by extension more complex, making supplier management more challenging.
Our research revealed that 44% of growing organisations would like to manage their suppliers more effectively, with 36% needing to ensure they have valid contracts in place with key suppliers. Additionally, we found that 83% of growing organisations do not challenge their suppliers on cost or performance!
This was a shocking discovery, but the research helped us understand the main areas that many organisations can and should improve. Having contracts with your key suppliers helps your organisation to lower supply chain risks and ensure best value purchasing.
However, the work doesn’t stop here. To ensure best value procurement in the future, it is crucial to have regular performance and cost reviews with your suppliers. This empowers your buyers to have better control of your supply chain and gives them the opportunity to negotiate better terms in future contracts and agreements.
Global Supply Chain
It is no surprise that organisations often struggle to manage suppliers on a global scale, especially with buyers in different locations. Having multiple suppliers in multiple countries can give your procurement team all sorts of headaches. Having the right tools supporting your team can help to take the edge off though. Procurement solutions can ease the pressure and give your procurement team better spend and supply chain visibility.
Supplier management and contract management solutions can help your procurement team to know who their suppliers are, what they supply and to which locations, as well as reminding your supply chain managers about all key dates like renewals, performance checks and certificate expiration dates.
Upstream procurement can get out of control very quickly in any growing organisation, but these eProcurement systems can enable the procurement team to get ahead and become a strategic function that minimises supply chain risk, drives spend savings and increases purchasing control.