{"id":9334,"date":"2019-04-18T12:18:12","date_gmt":"2019-04-18T12:18:12","guid":{"rendered":"https:\/\/sg.syspro.com\/blog\/3-ways-to-ensure-your-sourcing-policy-streamlines-and-optimizes-procurement\/"},"modified":"2021-03-04T14:50:24","modified_gmt":"2021-03-04T14:50:24","slug":"3-ways-to-ensure-your-sourcing-policy-streamlines-and-optimizes-procurement","status":"publish","type":"post","link":"https:\/\/sg.syspro.com\/blog\/erp-for-distribution\/3-ways-to-ensure-your-sourcing-policy-streamlines-and-optimizes-procurement\/","title":{"rendered":"3 Ways to Ensure your Sourcing Policy Streamlines and Optimizes Procurement"},"content":{"rendered":"

Procurement is often overlooked and undervalued<\/strong>, yet it impacts every facet of a business. Procurement and supplier relationships have an important role to play when it comes to ensuring manufacturers and distributors meet their strategic goals. Fortunately, strategic sourcing policies for procurement can provide the ultimate competitive advantage. It\u2019s time to streamline the procurement process, harnessing technology to iron-out the kinks.<\/strong><\/p>\n

<\/p>\n

Really, it\u2019s not just about buying raw materials, but also about partnering with suppliers to secure longer-term preferential agreements for the best quality input materials at the lowest cost. But how? Well with digital transformation sweeping through continent, more and more organizations are realizing just how crucial it is to update, adapt and adopt technologies that give them that upper-hand.<\/p>\n

1 – The Race to Digital<\/strong><\/h2>\n

In a 2017 survey conducted by Deloitte, 75% of Chief Procurement Officers believed that would they deliver a digital procurement strategy within five years. Highlighting the importance of digital transformation in the procurement process.<\/strong><\/a><\/p>\n

In Africa, the adoption and impact of industry 4.0 is steadily making its way to the top of many agendas, being acknowledged and discussed by industry leaders and policymakers alike. Why? Because of the high impact, smart technologies can have at a socio-economic level.<\/p>\n

Don\u2019t let your company\u2019s procurement process fall into the trap of becoming rigid. Remember, complacency kills.<\/strong> Rather, find ways to ensure that the entire process remains flexible, ready to adapt to today\u2019s ever-changing environment. When you are caught up in issues around cost reduction, purchasing risks and purchasing governance, delays occur, impacting your company\u2019s financial constraints.<\/p>\n

It\u2019s no secret that legacy systems are becoming redundant. By tapping into new technology, manufacturers and distributors can easily simplify and streamline the management of their procurement policies.<\/p>\n

So, when you are mulling over solutions that may mitigate or streamline issues around procurement, the answer is simple. Adopt a strategic sourcing policy. Partnering with suppliers to secure longer-term agreements<\/strong> for the best quality input materials at a lower cost should be top of the agenda.<\/p>\n

For example, SYSPRO\u2019s Preferred Supplier solution<\/a> <\/strong>\u2013 a feature within our ERP that facilitates and optimizes the management of sourcing strategies for material<\/strong><\/a> \u2013 for the recommended selection of suppliers throughout the purchasing cycle.<\/p>\n

By establishing and managing strategic sourcing policies in SYSPRO\u2019s Preferred Supplier feature you can decrease your purchasing risk and improve purchasing governance at the same time, achieving significant cost reductions.<\/p>\n

2 – The Mitigation of Purchasing Risks <\/strong><\/h2>\n

Reduce the risk associated with satisfying material demand,<\/strong> preferential negotiated rates, cost or demand planning optimization by managing your strategic sourcing policies more effectively.<\/p>\n

Buy Products and Services at the Best Value-to-price Ratio<\/strong><\/p>\n

You can leverage whole-company spending potential by establishing longer-term preferential agreements, giving you a competitive advantage.<\/p>\n

And since Preferred Supplier supports planning and pricing adherence, a company is equipped with the necessary tools to negotiate favorable terms and secure prices with suppliers proportionate to volume, ultimately improving the value-to-price relationship.<\/p>\n

3 – Improvement of Purchasing Governance<\/strong><\/h2>\n

Adhere to regulatory standards whilst sharing best practice by enforcing policies that deal with approved suppliers. SYSPRO\u2019s software allows you to work according to local government policies, and with the addition of electronic signatures, you remain compliant.<\/p>\n

Procurement in any industry can be a lengthy and often complicated process. Adopting a digital strategic policy will not only highlight new approaches that deliver cost savings but minimize risks and errors. Keep the entire procurement process agile and yield long-term benefits.\u00a0 It\u2019s time to start serving your bottom line.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>Procurement is often overlooked and undervalued, yet it impacts every facet of a business. Procurement and supplier relationships have an important role to play when it comes to ensuring manufacturers and distributors meet their strategic goals. Fortunately, strategic sourcing policies for procurement can provide the ultimate competitive advantage. It\u2019s time to streamline the procurement process, … Read more<\/a><\/p>\n","protected":false},"author":163,"featured_media":7501,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[281,276,30,124,284],"class_list":["post-9334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-erp-for-distribution","tag-erp-and-digitization","tag-erp-and-technology","tag-erp-systems","tag-inventory-management","tag-return-on-investment"],"acf":[],"yoast_head":"\n3 Ways to Ensure your Sourcing Policy Streamlines and Optimizes Procurement<\/title>\n<meta name=\"description\" content=\"Procurement is often undervalued, yet it impacts every facet of a business. 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