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Many business struggle with supply chain recruitment, but it's necessary for long-term success. Read here to get several recruitment tips.

The procurement process changes every year, so it is important to keep up with the latest trends. Here are a few trends to look out for in the new year.

How does a company procure the services and goods it needs to do business? Learn more about the procure-to-pay process and how it works here.

Are you looking for the best way to make your business more profitable? See our guide to small business management for ideas you can implement today.

The supply chain issues have been in the news a lot lately. Here’s how the global supply chain affects the procurement process.

The procurement process has a huge affect on your organization as a whole. Click here to learn more about the procurement process.

Did you know that 39 organizations worldwide reported a collective $22.3 billion in the procurement of goods and services in 2020? Are you looking to outsource some elements of your business processes? Or, perhaps you're a freelance worker, and you're interested in finding the best freelance websites to connect to potential jobs. Whichever business scenario applies, you'll need to find the right company. Finding the right company isn't just comparing prices, even though the cost is a significant element of the procurement process. Don't be intimidated by the "process." You don't have to be an experienced businessman to understand the following basic concepts of the procurement process. Keep reading to learn more! Different Types of Procurement When some people hear the word "procurement," they believe it is the same as purchase. However, this assumption isn't necessarily valid as purchasing is a tiny step in procuring goods and services. The procurement process is a company's steps to obtain the goods and services they provide for their customers. There are four main types of procurement used in business across the world. Direct Procurement Direct procurement refers to any good or service required to create the end product. For example, a manufacturing company would directly procure raw materials and components to make a product. A retail business will directly procure items that would then be for resale. Retailers will typically purchase their products from a whole seller, then resell these items as their end product. Indirect Procurement Indirect procurement is for items that businesses need to run the day-to-day operations. These goods and services include office supplies, furniture, consulting services, etc. It is indirect if the goods or services are not necessarily for your end product. For example, if you run a business that packages and ships your product, any boxes or wrapping materials are procured indirectly. Goods Procurement Goods procurement refers to purchasing any tangible items needed to run your business. These items can be direct or indirect and include the required software for your technology. Goods used in your business will heavily rely on good supply chain management. Keep track of your inventory and order ahead of time to maintain your stock. Services Procurement This specific type of procurement focuses on people-based services. Specifically, it is a service procurement if you need to hire someone to complete a task for your business. Below you will find a list of different types of service procurement: law firms construction skilled laborers on-site security lawn care All services aren't necessary for your business to run smoothly, but they make your job much easier as the business owner. In addition, delegating tasks will lighten your workload so you can focus on your end product. What Is The Procurement Process? Every company or business runs differently. For example, procurement for a hair salon will not look the same as for a web development company. Nonetheless, the procurement process has nine crucial steps that are typically the same for every business owner. Step One The first step of the procurement cycle is to identify what goods and services are needed for your business to run smoothly. Using data, previous purchase history, and your product knowledge will make this step a simple first move. A tip for more accessible procurement in the future would be to keep all previous purchase information in one place. Then, this organization will make ordering parts and goods easier if you already have the information. Step Two In most instances, once you have determined what is needed, it's time to create a purchase request. The purchase request will include specifications like the amount of product required and the cost of the product. If you are a business owner, this step may not be necessary, depending on the size of your operations. However, if you work for a large corporation, this is necessary so the higher-ups can approve the purchase of new materials. Step Three Now that you have assessed your needs, it's time to choose a vendor that will fulfill the purchase request. You will then start contacting vendors and requesting quotes on your required items' prices. This step is the opportunity to shop around, ensuring you're spending wisely but getting a quality product. If you find a much cheaper vendor than its competitors, be prepared to inspect the materials to ensure quality. Step Four A good rule of thumb here is to get at least three quotes before making a new purchase. Compare the prices, the shipping time, and the materials' quality. When comparing your quotes, look for opportunities to negotiate. For example, some companies are willing to come down on the price a little to secure business with your company. Steps Five and Six Now that you've chosen a supplier, it's time to create a purchase order. The purchase order should detail each item needed as well as the amount. Once the items come in, go through and inspect the goods. During this process, you should look for the quality of items and ensure there was no damage during transit. Step Seven At this point in the process, you will conduct three-way matching. This process means verifying the information in three places to ensure you received all the correct materials. The three places you have to compare are the purchase order, packing list, and invoice. If all three of these match and you have all the materials ordered, it's time to pay the invoice! Step Eight After everything is verified, it's time to approve the invoice and arrange payment to the supplier. Please keep track of invoices and pay them promptly, as this will build good relationships with your suppliers. Step Nine In our opinion, step nine is the most crucial part of the process. You need to organize and record all aspects of the procure-to-pay process, so it is easier to replicate in the future. It's essential to have streamlined recordkeeping so that anyone in your business can help maintain your inventory. In addition, records will help your business come tax season and if you receive an audit at any point. Clear, concise records will also alleviate any issues if there is a dispute between suppliers and your company. Benefits Of Procurement Now that you know the main steps of the procurement process, it's essential to understand why this business model benefits you . Using procure-to-pay solutions can positively impact all aspects of your business. Time Management and Identifying Waste With a modern procurement process, many aspects of your business will become automated. A quicker process allows you to manage your time more wisely, allowing you the freedom to expand your business creatively. Another benefit of using procurement services is it helps you identify waste within your business. A streamlined process lets you see what items are being wasted or used inefficiently. Productivity and Communication Your team will be able to work more effectively with a procurement process in place. Being able to focus on their responsibilities will create a good pace for creating your end product. With that increase in pace, your employees can better communicate their needs within their environment. For example, procurement allows different departments to speak about their inventory and supply needs. Financial Savings and Reliability You can count on your product to be more reliable if you have consistent policies. Your employees will also be more reliable in creating your products or maintaining inventory. Procurement management relies on sourcing the most cost-effective materials possible. Getting quotes and comparing suppliers gives you more control of your finances. Procurement Consultants Does the procurement process seem like a lot of work? Understandably, you may want to outsource that entire process. You can utilize a procurement consultant to help create the process. Procurement consultants can help provide the best strategies or suggest alternatives that may save your business money. In addition, consultants like Procure Mensh can save you the trouble of shopping for vendors and provide insight into the current market. Some companies even offer to help set up your business model and help you create a streamlined process to maintain your inventory. In addition, some consultants can help you with negotiations on prices and even make your end product more desirable. Now Is The Time! If you have recently started a business or have a product you think will sell, contact Procure Mensh now! Their team of expert consultants will aid you in the procurement process and ensure you start your business smoothly. Visit their website and schedule a meeting today!

How comfortable do you feel with your procurement process? Studies have found that procurement health shows a strong correlation to corporate performance. So, what can you do to make procurement your top priority? Now more than ever, companies need to produce cost savings. One of the solutions to lead value capture is procurement services. They can build the resilience your company needs to achieve its goals. One of the best ways to do this is to consider procurement consulting. Are you interested in learning more? Here is everything you need to know about procurement consulting services and why you should hire them. What Is Procurement Consulting? Procurement consulting services assign a procurement consultant to your business. The consultants have extensive experience in procurement. Some consultants are also industry-specific and specialize in specific procurement tasks. Many challenges can occur during the procurement process. These include: Stakeholder engagement Structural issues Loss of supply house control A reputable procurement consultant helps your company navigates these challenges with ease. Whereas if you have to manage challenges alone, it can lead to severe consequences. Procurement consultants assess your business needs to provide the appropriate procurement services. Services could include procurement process reviews or implementations, strategy planning, advice, and training. Reasons to Use Procurement Services The global procurement as a service market size is worth around $6 billion. And there is a predicted compound annual growth rate of 10.4% between 2022 and 2030. More businesses are recognizing the importance of procurement services and their benefits. Whether you need a project procurement consultant or general advice, they offer many benefits. Gain Control Over Your Procurement Process It is common to lose control of the procurement process or not have a process established at all as a business. Some businesses do not even keep an inventory, making it hard to find solutions for your business. Inefficient processes mean you are not in control of your business. Procurement consulting services can make establish an efficient procurement process for your company. They will prevent your company from letting your procurement process simply be an order processor. Instead, they will establish a process that offers complete visibility. You will understand all direct and indirect spending. Plus, you will be able to identify inefficient spending and add value with ease. Processes will be as efficient, transparent, and connected as possible. Manage Risks Many companies struggle to identify risk. Others limit themselves to only aiming for the lowest cost and meeting compliance requirements. A procurement consulting service has the knowledge to establish efficient risk management processes. If you do not have control over purchasing processes, it can be hard to prevent risks from escalating. Procurement services identify and find solutions. For example, they will locate any single source or low-value spend suppliers. It can be important to take some risks in business. But if you are not familiar with the procurement process, the risks begin to own you. Some other hazards include: Poor supplier selection Unorganized supplier relations Inefficient management of contracts and supplier relationships Inaccurate business needs analysis Procurement delays Talent shortages It is normal to have procurement challenges. You cannot always control what occurs, but how you respond is vital. Hire procurement consulting services to deal with risks in well-regulated ways. Simplify Supply Chains You will also reduce supply chain complexity when you gain control over processes. Procurement consultants can help you change how your business functions. The restructuring will ensure your supply chain is as resilient as possible. For example, they may introduce automation of certain services and standardize processes. Automation and digitalization of procurement services help simplify your supply chain. Using tools such as digitization will also help your company optimize data. You can then make better decisions and gain control over your inventory. Procurement consulting services have the knowledge and access to the best implementation tools. Supplier Management Procurement consulting services will become the primary contact source of supplier management. They will ensure all procedures and relationships positively impact your company. They will also provide maximum value from supplier relationships by establishing strategic short and long-term processes. 57% of companies believe that supply chain management gives them a competitive edge. One of the places you need to start is supplier management. Leave it to a procurement consultant to manage relations in the most effective way. Cost Savings One of the main advantages of hiring procurement consulting services is cost savings. Although it is far from their only function, procurement services help you focus on spending efficiently. Some ways procurement consulting services help you with cost savings include: Help you understand the usage of resources Identify where there is wastage Improve supply house management Remain profitable Manage market share Stabilize your target liquidity level Reduce company expenditure Improving vendor relations The procurement consultant will examine your entire spending data. They can then identify patterns and create a plan to manage costs. If you want short-term and long-term cost savings, hire a procurement consulting service. They will accelerate your value capture, recalibrate your cost-saving targets, and boost your supply chain resilience. Improved and New Relations One of the critical factors in your company is positive relations. A procurement consultant can help improve supplier and stakeholder relationships in different ways. For example, they can establish open communication. Everyone will understand the requirements to work well together. They will clarify expectations for all and reduce the risk of miscommunication. Miscommunication can lead to more severe consequences, such as legal disputes. So, it is essential everyone is on the same page. They can also help with strategic competitive tendering. This is where they gain evidence of the supplier's delivery or implementation. The result is that you establish the right kind of relations for your business from the start. A procurement consultant can also improve stakeholder engagement. Cost savings need to be an integral part of your business, and a procurement consultant can produce the evidence to communicate this. They will have accurate spending data to give valid evidence to take seriously. Best Procurement Strategy If you are not experienced with procurement processes, it can be hard to know what approach to adopt. A procurement consultant will find the best strategy. They can do this in different ways, including: Identifying any structural issues Analyzing key performance indicators (KPIs) Customize strategy for your specific business needs Identifying company principles, goals, and values Your company might need a new project procurement strategy and new contracts each time. However, procurement consulting services will strategies always have roots in your company values. They have the impartial but critical viewpoint to explore your ideas. They will give you new perspectives and insights on strategies that will work. They will also help communicate them in the best way to senior executives, board members, and other key stakeholders. Training Procurement consulting services help give you the confidence to take ownership of your business goals. They can provide the explanations you need to understand your company on a deeper level. Plus, they can help improve company negotiation skills and establish boundaries for your business. For example, they may hold a supplier-negotiation event with top strategic suppliers. You will also be able to observe how to execute negotiations like this. A procurement consultant will also leverage data in a user-friendly way. It can be overwhelming for employees if they do not understand changes. Consultants can help maintain employee satisfaction and company functioning during times of transition. Time Savings Cost savings are not the only reason to hire procurement services. You also benefit in other ways, such as time savings. If you do not understand the procurement process, it will take a lot of your time and resources to make changes. Plus, you might not make the right decisions the first time. Procurement mistakes can lead to increased stress levels. Companies are feeling the pressure to make more cost reductions and meet targets. This can take a toll on everyone's well-being. A procurement consultant will manage your procurement processes. While they are doing this, you can focus on other essential company functions with peace of mind that your company is moving in the right direction. Company Governance and Compliance It is essential to maintain effective governance in your company to remain compliant. Otherwise, you risk deals falling through and even legal issues. Procurement consulting services know how to meet legal requirements in the most effective way, even if you work in different countries. They will do this in different ways, such as making processes transparent, improving process monitoring, and establishing a visible infrastructure. Invest in Procurement Consulting If you want your business's internal and external operations to run smoothly, it is time to consider procurement consulting. They can offer a range of procurement services to improve your overall procurement strategy. A successful procurement strategy can lead your business growth. It is time to rethink what procurement services mean, as it is far from just making cost savings. Find out for yourself by using a procurement consulting service. Are you ready to hire a procurement consultant for your business? We are here to help. Contact us today to learn how we can meet your company procurement needs.

How comfortable do you feel with your procurement process? Studies have found that procurement health shows a strong correlation to corporate performance. So, what can you do to make procurement your top priority? Now more than ever, companies need to produce cost savings. One of the solutions to lead value capture is procurement services. They can build the resilience your company needs to achieve its goals. One of the best ways to do this is to consider procurement consulting. Are you interested in learning more? Here is everything you need to know about procurement consulting services and why you should hire them. What Is Procurement Consulting? Procurement consulting services assign a procurement consultant to your business. The consultants have extensive experience in procurement. Some consultants are also industry-specific and specialize in specific procurement tasks. Many challenges can occur during the procurement process. These include: Stakeholder engagement Structural issues Loss of supply house control A reputable procurement consultant helps your company navigates these challenges with ease. Whereas if you have to manage challenges alone, it can lead to severe consequences. Procurement consultants assess your business needs to provide the appropriate procurement services. Services could include procurement process reviews or implementations, strategy planning, advice, and training. Reasons to Use Procurement Services The global procurement as a service market size is worth around $6 billion. And there is a predicted compound annual growth rate of 10.4% between 2022 and 2030. More businesses are recognizing the importance of procurement services and their benefits. Whether you need a project procurement consultant or general advice, they offer many benefits. Gain Control Over Your Procurement Process It is common to lose control of the procurement process or not have a process established at all as a business. Some businesses do not even keep an inventory, making it hard to find solutions for your business. Inefficient processes mean you are not in control of your business. Procurement consulting services can make establish an efficient procurement process for your company. They will prevent your company from letting your procurement process simply be an order processor. Instead, they will establish a process that offers complete visibility. You will understand all direct and indirect spending. Plus, you will be able to identify inefficient spending and add value with ease. Processes will be as efficient, transparent, and connected as possible. Manage Risks Many companies struggle to identify risk. Others limit themselves to only aiming for the lowest cost and meeting compliance requirements. A procurement consulting service has the knowledge to establish efficient risk management processes. If you do not have control over purchasing processes, it can be hard to prevent risks from escalating. Procurement services identify and find solutions. For example, they will locate any single source or low-value spend suppliers. It can be important to take some risks in business. But if you are not familiar with the procurement process, the risks begin to own you. Some other hazards include: Poor supplier selection Unorganized supplier relations Inefficient management of contracts and supplier relationships Inaccurate business needs analysis Procurement delays Talent shortages It is normal to have procurement challenges. You cannot always control what occurs, but how you respond is vital. Hire procurement consulting services to deal with risks in well-regulated ways. Simplify Supply Chains You will also reduce supply chain complexity when you gain control over processes. Procurement consultants can help you change how your business functions. The restructuring will ensure your supply chain is as resilient as possible. For example, they may introduce automation of certain services and standardize processes. Automation and digitalization of procurement services help simplify your supply chain. Using tools such as digitization will also help your company optimize data. You can then make better decisions and gain control over your inventory. Procurement consulting services have the knowledge and access to the best implementation tools. Supplier Management Procurement consulting services will become the primary contact source of supplier management. They will ensure all procedures and relationships positively impact your company. They will also provide maximum value from supplier relationships by establishing strategic short and long-term processes. 57% of companies believe that supply chain management gives them a competitive edge. One of the places you need to start is supplier management. Leave it to a procurement consultant to manage relations in the most effective way. Cost Savings One of the main advantages of hiring procurement consulting services is cost savings. Although it is far from their only function, procurement services help you focus on spending efficiently. Some ways procurement consulting services help you with cost savings include: Help you understand the usage of resources Identify where there is wastage Improve supply house management Remain profitable Manage market share Stabilize your target liquidity level Reduce company expenditure Improving vendor relations The procurement consultant will examine your entire spending data. They can then identify patterns and create a plan to manage costs. If you want short-term and long-term cost savings, hire a procurement consulting service. They will accelerate your value capture, recalibrate your cost-saving targets, and boost your supply chain resilience. Improved and New Relations One of the critical factors in your company is positive relations. A procurement consultant can help improve supplier and stakeholder relationships in different ways. For example, they can establish open communication. Everyone will understand the requirements to work well together. They will clarify expectations for all and reduce the risk of miscommunication. Miscommunication can lead to more severe consequences, such as legal disputes. So, it is essential everyone is on the same page. They can also help with strategic competitive tendering. This is where they gain evidence of the supplier's delivery or implementation. The result is that you establish the right kind of relations for your business from the start. A procurement consultant can also improve stakeholder engagement. Cost savings need to be an integral part of your business, and a procurement consultant can produce the evidence to communicate this. They will have accurate spending data to give valid evidence to take seriously. Best Procurement Strategy If you are not experienced with procurement processes, it can be hard to know what approach to adopt. A procurement consultant will find the best strategy. They can do this in different ways, including: Identifying any structural issues Analyzing key performance indicators (KPIs) Customize strategy for your specific business needs Identifying company principles, goals, and values Your company might need a new project procurement strategy and new contracts each time. However, procurement consulting services will strategies always have roots in your company values. They have the impartial but critical viewpoint to explore your ideas. They will give you new perspectives and insights on strategies that will work. They will also help communicate them in the best way to senior executives, board members, and other key stakeholders. Training Procurement consulting services help give you the confidence to take ownership of your business goals. They can provide the explanations you need to understand your company on a deeper level. Plus, they can help improve company negotiation skills and establish boundaries for your business. For example, they may hold a supplier-negotiation event with top strategic suppliers. You will also be able to observe how to execute negotiations like this. A procurement consultant will also leverage data in a user-friendly way. It can be overwhelming for employees if they do not understand changes. Consultants can help maintain employee satisfaction and company functioning during times of transition. Time Savings Cost savings are not the only reason to hire procurement services. You also benefit in other ways, such as time savings. If you do not understand the procurement process, it will take a lot of your time and resources to make changes. Plus, you might not make the right decisions the first time. Procurement mistakes can lead to increased stress levels. Companies are feeling the pressure to make more cost reductions and meet targets. This can take a toll on everyone's well-being. A procurement consultant will manage your procurement processes. While they are doing this, you can focus on other essential company functions with peace of mind that your company is moving in the right direction. Company Governance and Compliance It is essential to maintain effective governance in your company to remain compliant. Otherwise, you risk deals falling through and even legal issues. Procurement consulting services know how to meet legal requirements in the most effective way, even if you work in different countries. They will do this in different ways, such as making processes transparent, improving process monitoring, and establishing a visible infrastructure. Invest in Procurement Consulting If you want your business's internal and external operations to run smoothly, it is time to consider procurement consulting. They can offer a range of procurement services to improve your overall procurement strategy. A successful procurement strategy can lead your business growth. It is time to rethink what procurement services mean, as it is far from just making cost savings. Find out for yourself by using a procurement consulting service. Are you ready to hire a procurement consultant for your business? We are here to help. Contact us today to learn how we can meet your company procurement needs.