The value of procurement & supply chain functions
Introducing procurement and supply chain professionals to your organisation can bring a variety of benefits to your business, including efficiency and cost savings. Professionals within this space are experts in managing the sourcing, procurement, and distribution of goods and services, and their skills can positively impact different aspects of your business.
In this article, we will be discussing some of the key benefits with our National Procurement and Supply Chain Recruitment Specialists Jake Lewis and James Allen.
“Over the last 2 years we have started to see a real movement in how procurement is viewed within a company. It has shifted from solely a cost savings approach to a more strategic function. This new approach will look at how teams can prioritise supplier relationships, sustainability and social responsibility. Procurement now looks to align with broader corporate goals and ensure best practices. “- James Allen, Senior Consultant.
Procurement professionals are skilled in negotiation and cost analysis, capable of helping your organisation identify cost-saving opportunities, negotiate better supplier contracts, and optimise procurement processes to ultimately reduce company expenses.
Research suggests that focused supply chain optimisation can even reduce costs by up to 25%, so introducing this function within your business could have a profound impact on finances.
Enhanced Business Efficiency
Supply chain experts can streamline the flow of goods and services from suppliers to customers. This can lead to faster delivery times, reduced lead times, and improved inventory management, ensuring products are available when needed and having a huge impact on customer service and expectations.
Research shows that customer service has one of the biggest impacts on consumer decisions with 89% of consumers more likely to make another purchase after a positive customer service experience. HubSpot has reported that 93% of customers are likely to make repeat purchases with companies that offer excellent customer service.
Business Risk Management
Procurement and supply chain professionals are adept at identifying and mitigating risks in the supply chain, developing strategies to minimise disruption, whether they are related to supply shortages, natural disasters, or geopolitical issues to ensure that business services can maintain normal business levels.
Supplier Relationship Management
Procurement professionals can establish and maintain strong relationships with suppliers. Effective supplier relationships can lead to better terms, higher product quality, and innovation in the products or services you receive.
Evolving Market Insights
Often professionals within this function will have access to market data and insights that can inform strategic decision-making, providing valuable information on market trends, supplier performance, and competitive intelligence.
Compliance and Sustainability
A procurement team will be able to ensure your organisation complies with relevant regulations and standards. They will be able to help implement sustainability initiatives and responsible sourcing practices, which can enhance your company's reputation and brand image in a market that is ethically conscious.
Nielsen IQ reports 95% of consumers try to live sustainably with 39% of customers saying they are very likely to opt for a retailer that is known for sustainable options over a product that is not.
Improved Product Quality
By working closely with suppliers, procurement professionals can drive improvements in product quality and consistency, leading to higher customer satisfaction and increasing your brand reputation/awareness.
Procurement and supply chain professionals can contribute to strategic planning by aligning supply chain strategies with overall business goals. This can lead to increased competitiveness and long-term success for your business.
With expertise in efficient procurement and supply chain management, these professionals can free up your organisation's time and resources, allowing you to focus on core business activities and providing current employees with additional support.
This could have a profound impact on staff retention and satisfaction as more than half of UK workers feel that work is getting more intense and demanding with 40% now required to do more work in the same amount of time!
Scalability and Flexibility
The strategies supply chain professionals construct are made to be adaptable to changes in demand, allowing the organisation to scale up or down without disruption.
This can also prove essential for organisations looking to expand internally, as Procurement and Supply Chain professionals will be able to assist businesses in navigating global markets, taking account of where you source, and ensuring the distribution of products is efficient.
Introducing procurement and supply chain professionals to your organisation can have a far-reaching impact on operational efficiency, and strategic positioning. Their expertise and focus on managing the flow of goods and services can contribute to sustainable growth and success.
If you are currently growing your procurement and supply chain function or considering if your business could benefit from these additions to your team, please reach out to our specialist experts who would love to discuss your hiring needs and market insights on procurement and supply chain functions.