So when I asked last time, are you sure that the prices at which you are buying are the best? Did you just think about the final value you are paying or did u also think of the amount of time u spend on finalizing that price? Many don't. Over the last five months, I have interacted with more than 250 purchase decision makers in the mid to large segment companies (Not MNC's) and I observed an interesting pattern:
Every purchase manager spends a lot of time trying to ensure he gets the best price from his vendors without compromising on the quality and the payment terms while facing a lot of issues
36 % of them said they compromise on the price because they get it with a better credit period
27 % of them stick to their regular vendors since ages and are not comfortable talking to new vendors because they believe their regular ones give them the best price
40 % of them say the vendors don't respond in time and waste a lot of time in following up with them for the quotations
33% of them said they spend a lot of time (More than 2 -3 days) in identifying the best alternatives in the market for each product
60 % of their time goes in working on the excel sheets and making comparisons to find the best combo
If it's something new that they are trying to purchase over 70% of them are not sure to what extent it can be negotiated
90 % of them always take the inputs from the field for any procurement needs but doesn't have any self-pattern for ordering/procuring
70 % of them are worried about the quality or reliability of the new vendors
More than half of them feel that they missed an opportunity of saving more because they did not know when the same product was sold at a cheaper price
35 % of them say the efficiency gets effected when they are out of station or not available in the office
Today none of our clients face these issues, so how did we solve them?
The system searches everything in the internet and gets an estimate of the product cost even before u discuss with your vendors or take quotations from.
The system gives an insight of the least price the product was bought in the system
The system also informs the previous purchases of the product by your organization and its price trends
The system gives an insight of the right time/period to purchase the product to ensure the best price
The system auto-negotiates and tries to get the best price i.e. much lower than the least quote before negotiation
The system gives you the best combo of each item and the corresponding vendors to be purchased from in your requirement if it has multiple items in it within no time
The system auto orders your procurement needs identifying the best vendors i.e. if you have given your project details and timelines, the system can order as per the schedule
The system ensures you get the best price without compromising on the quality or the payment terms
Time is money; we save a lot of time (around 70%) for the procurement team by eliminating the quotation follow up, comparatives and manual tedious price negotiations. The competitive environment which this system creates helps clients getting the best price (additional 5%-15% savings) among the vendors.