Wikipedia – the popular online encyclopedia – defines the Procurement as “the acquisition of goods or services to the total cost of the best real estate in sufficient quality and quantity at the right time, right place at the right hand for the direct benefit or use of company could, individuals or governments, usually by a contract, or it can just as human resource selection. simple procurement can no more than the purchase involve repeat. Complex procurement involve finding long term partners – or “co-destiny”, the could in principle suppliers to commit an organization to another. Procurement can provide for the acquisition, subcontracting, etc. all related resources.
What can not find this definition, is the importance of procurement in the bottom of an organization. All too often the procurement for the various departments of an organization is made. Any person purchasing authority within a department is authorized up to a certain amount. While large projects usually require licensing position through various channels, such as pressure-going purchases are approved at the departmental level. For a large organization, there may be dozens of departments.
Printing costs and other are added, are shown but not listed as an expenditure in the annual report at the end of the year. Consequently, most organizations have not the slightest idea of how much you save on printing and related products and services to defined specifications and not reported by the numbers, except for a lump sum or as “other costs”.
To convert the procurement function in an efficient financial management, it needs a paradigm shift – one that demands accountability by centralizing and detailed reporting. Gone are the days when departments may move freely within a certain budget, provided that this amount is not exceeded. In fact, in some organizations, was the common practice to spend the allocated amount, if it is necessary or not just for that amount or more will be allocated the following fiscal year should be.
Tools today announced that the archaic concept to make the recruitment. New approaches to recruitment, which is possible, the details of each purchase in a computer so that from a management perspective can be seen on large, what is spent, by whom made the basis of why and when. For example, if a dozen departments printer to print on a dozen different and the amounts paid for similar jobs very differently, which is a red flag of the management.
Not only is this a sign that no pressure is purchase of the program within the organization, such as random, which may be able to purchase up to significant dollars – dollars that are saved for other purposes, appear if spent more wisely efficient and coordinated shows.
New methods and technologies are available today that can dominate the cost for the buyer, rather than the consent of the supplier will always increase prices, if asked to do their utmost to produce to make a job offer. Even in the negotiations and the type of card prices, the prices of the traditional methods of orders received are unnecessarily high.
The best way is an approach whereby the buyer sets standards for suppliers. Therefore, the supplier does not dictate the price. This is achieved by creating an environment of openness to competition. The first step to build a database of trusted sellers – is all carefully selected and reviewed by the buyer to ensure that any supplier of the swimming pool will provide quality work on time no matter the price. The next step is for the contract in the same specification communications and workflow system that stores the database provider in the buyer power. The team takes over from here. When asked what coincides with the specifications for the cooperation with suppliers capable of doing the job. Only selected suppliers are invited to offer themselves in the workplace. This is where the rules on public procurement work for the benefit of the buyer.
All providers know that the buyers are looking for the lowest bidder, and the best way to get great discounts from 25% to 50% range for the execution of the work when the computer is otherwise idle would be the case. This is always full season and is a common practice in the printing industry, because most printers reserve of 30% of its production plans for the important work for the customer. If this work does not materialize, the downtime has to be filled or there will be no income. This competitive procurement approach works well for the benefit of the provider. Instead caught without work, idle equipment and employees and a turnover, do not, a provider of employment and income growth. The providers of this strategy to increase profitability in line annual baseline of the national average of less than 3% to about 14%.
However, this new printing process for obtaining specifications and other products and services is not all about price. This is a fairly attractive, but the efficiency gains are won, and the establishment of strong standardized controls. Every aspect of a job from conception through production and changes to delivery and billing, will be recorded and archived by the system of communication and workflow. The buyer and the supplier’s control who has access to the system and when so that if a decision is to the person whom the decision taken note of what the documents, when, and why. full transparency is good. Full accountability is assigned. The quality control is strengthened.
Since this sequence of events occurs after job work, know the buyer and the supplier, which is expected. Try it removed, suppliers to find each time a work is necessary. All are in the database registered buyer opportunities. Eliminates that to negotiate the prices. You save time and resources. Competitive procurement method takes care and provides predictable results – results that include a line item, should be the shareholders to prove how the organization is a new recruitment process to save money.
