It can be difficult for business owners to get the most out of their operating budgets. This is often the case because they are too close to a situation and lose objectivity, it’s not their area of expertise, or they’re focused on the day-to-day business of growing their companies.
When companies are looking for a fresh perspective on reducing expenditures, they may want to consider the unique services provided by an emerging class of consultants known as procurement experts.
Procurement experts specialize in contract negotiation for a variety of operating expenses. They provide the objectivity and market insight needed to maximize monthly expenditures and achieve budget certainty, so business owners can focus on their passion.
“Great companies have a passion for their product or service, but often that passion doesn’t extend to negotiating expenses,” says Karl Shaw, COO at TPI Efficiency Consulting.
Procurement experts provide innovative strategies, market and technology guidance, and help finding the right contract to reduce costs and invest in operational efficiency.
Smart Business spoke with Shaw about the role of procurement experts and how their work impacts the operating costs for businesses.
What should companies expect from working with procurement experts?
Procurement experts are more than number crunchers and contract negotiators. They offer new ideas based on their experience working with a variety of businesses. That can include current information on industry trends, knowledge of supply sources and vetted suppliers in a given region, and access to a network of experienced professionals that serve as an expansion of the company’s internal team.
Businesses of all sizes face ever-increasing competition. Nonprofits find themselves competing for scarce donation and grant funds. The increased revenue gained by reducing operating expenses can be reinvested in growth and the long-term health of the company. In this way, the net savings and improved ROI gained from working with a skilled consultant will always pay off.
How do procurement experts operate and who should consider working with a procurement expert?
Businesses with multiple locations, manufacturers and companies that own large commercial office buildings have significant expenditures. Their large service and commodity purchases can be complex. Associated contract negotiations may be time consuming to those unfamiliar with product and pricing structures. That’s where a procurement expert comes in.
While most business owners typically negotiate a few contracts related to operating expenses every year, procurement experts negotiate hundreds of contracts every month. They confidentially collect and assess current operating costs, suppliers and contracts, then develop and review RFPs. Then they explore capital expenditure solutions to help companies invest in even greater efficiency. Most importantly, procurement experts will provide continuous support, keeping you informed about emerging technologies and market changes throughout your contract.
What is the benefit of working with procurement experts? What do they offer that companies may not be able to produce on their own?
The importance of effective budget management cannot be overstated. Untapped cost reductions are an effective way to increase cash flow and free up resources for facilities and product improvements that net sales.
There is no reason for a company to face a competitive world without professional assistance. Procurement experts are professionals that match a plan to your corporate capabilities for continued success in an ever-changing marketplace.
Insights Energy Solutions is brought to you by TPI Efficiency Consulting