For a company to make profits, the cost of purchasing goods and services has to be less than the revenue generated from those goods and services. Supplier/procurement management should therefore ensure that the company purchases goods and services at the best possible price; and that factors such as quality and quantity are assessed on a continual basis.
Suppliers form an important part of your business. Procurement is often responsible for up to 70% of companies’ revenue, so small reductions in costs can have a huge impact on profits. Supplier/procurement management therefore refers to the processes and activities dealing with the identification, selection, and management of relevant suppliers followed by a practical evaluation of their performance to ensure they are providing maximum value for the organization.
An effective supplier management process can be responsible for; negotiating lucrative production and supplier contracts, spearheading innovative new processes, spearheading corporate social responsibility in diversity and inclusion by proactively seeking diverse suppliers, and giving your business a competitive edge.
Establishing a proper relationship, managing the requirements, and communicating clearly with suppliers is essential to the organization, which means a comprehensive supplier management policy is required.
What should you expect from this service:
To provide low-cost, outsourced finance and accounting services to our SME clients within a framework that assures control, quality service delivery, and high performance.