Procurement Consulting Firms

8 Tips for Optimizing Your Supply Chain for Procurement Consulting Firms

Supply chain optimization is important for any business in the modern era, but it’s particularly critical for procurement consulting firms like ours. With many different groups of people throughout your organization to consider, it can be difficult to optimize your supply chain in such a way that benefits your company while still meeting the needs of all your various stakeholders. Fortunately, you don’t have to do this alone; there are plenty of optimization strategies you can use to get started today!

Here are eight tips we recommend to help our clients optimize their supply chains quickly and easily.

1) Lower Transaction Costs 

The best way to lower costs is to reduce supply chain transaction costs. Transaction costs are any kind of cost incurred by a company in purchasing, receiving and delivering its goods or services. They include trade fees, tariffs, taxes, customs duties and brokerage costs. These expenses add up quickly and they’re generally not a line item in an income statement.

But these seemingly intangible charges can represent up to 20 percent of a company’s total supply chain cost! Here are some ways procurement consultants help companies avoid them

2) Streamline Delivery Times 

Streamlining your supply chain to save money is a key factor in maximizing your profits. One of the easiest ways to do that is by streamlining delivery times—especially if you’re dealing with multiple suppliers.

Many procurement consultants recommend that their clients consider consolidating deliveries at certain points in time. Not only will your business save money on fuel, but it will cut down on time spent arranging pickup and drop-off times.

3) Better Customer Service 

As a customer, you expect top-notch service. But it’s not just what you expect that matters—it’s also what you receive. When a company has a poor reputation for providing quality customer service, it hurts their business. And it can happen quickly: A few bad reviews or complaints on social media can completely destroy a brand’s reputation and make customers avoid them in favor of other companies who value customer service just as much as they do profit.

4) Improve Inventory Management 

If your suppliers are running low on an item, they may have to ship it from a warehouse on another continent. A shipping delay can lead to unhappy customers and lost sales, so it’s important to keep tabs on inventory levels and make sure there is always enough of each item in stock. It’s also wise to look into technology that helps you forecast demand more accurately so you don’t waste money carrying extra inventory.

5) Reduce Resourcing Risk 

Sure, it’s easier to hire in-house talent. But when faced with a skills gap, most procurement consulting firms elect to outsource talent in order to guarantee they meet client deadlines and service-level agreements. Outsourcing is also a common strategy used by procurement consulting firms looking to grow their teams quickly. Many procurement consulting firms find candidates through marketplaces like Upwork, or leverage recruiting platforms that expedite access to qualified talent.

6) Lower Logistics Cost 

Staying on top of your supply chain logistics is an important component of how much money you’ll save or make. And, since many procurement consulting firms rely heavily on what they receive in terms of goods and services to be able to do their job well, it’s crucial that you keep a keen eye on your delivery processes and strategies. Use these tips to optimize your supply chain.

7) Competitive Advantage over Others in the Industry 

Why is it worth working with EDS over other supply chain consulting firms in your industry? Supply chain optimization is all about creating a competitive advantage through data collection and using analytics to make decisions. Those who are able to spend time testing different models for their company have a massive head start on their competition. It may be hard to quantify until you are at least several months into your analysis, but there will be a point where one competitor has more data points than another.

8) Increase Margins and Profits 

Achieving profitability is a business owner’s primary concern. There are many factors to consider when trying to optimize your supply chain, and you’ll have to find out what works best for your industry and business model. But one thing is certain: if you can manage your costs of production and consumption as efficiently as possible, chances are you’ll end up with more profit at the end of each month.

Final thought 

As an international business consultant, you should think critically about how different people and organizations make decisions. If you can understand how different cultures view supply chain management, you’ll be better able to help your clients improve their operations—and be a more successful business consultant in general.

The more that you study various cultures, practices, and values of other companies around the world, particularly when it comes to global procurement service, the more well-rounded a company executive and strategy expert you’ll become.

 

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