Procurement is the act of obtaining new resources that are constantly evolving. Today, procurement leaders are expected to work with C-suite as trusted partners, and business advisors. Their role includes advising on how to mitigate risks, create a competitive advantage and drive growth.
Salahkaar helps companies with procurement consulting. We help build and manage organizations to achieve efficiency in their operations, strategizing, and increased business impact in the field.
Our expertise in the field seeks to combine strategy, technology, and operations to change business outcomes. As well as, to guide procurement teams towards implementing this three-fold model.
Procurement Consulting at Salahkaar:
At Salahkaar our goal is to help the business achieve its financial, and strategic objectives via our procurement consulting services.
Our capabilities include:
Merger and Acquisition services
The procurement consultants envision an organization where the ROI is sustainable and has enhanced value. Salahkaar’s procurement services will help organizations increase profitability, productivity, streamline operations, and give the organization a competitive edge in the market.
From providing solutions to innovation, and incorporating creativity, our procurement consultants help find solutions to all the pressing problems at the organization. The services we provide have been adjusted to suit today’s volatile climate and adapt to the client’s needs.
Why Choose Salahkaar:
All of the procurement consultants at Salahkaar have a rich knowledge base of the best practices, and tools that are seasoned constantly. Some of our key capabilities include:
Procurement Strategy: We are committed to executing our strategic recommendations. Success should be measured in real-time and not simply rely on reports or the sheer value of the recommendations made. The procurement solutions we offer guarantee strategies that can be put into action.
Transformation: The procurement strategy we offer combines advanced technology that will exceed all your expectations. We do not just help design the procurement strategy but are with you every step of the way. From performance management to achieving organizational development, we help revitalize teams, processes, and functions.
Industry Experience: Our consultants have knowledge across several industries. The team will provide an industry-specific experience that translated to progress in no time.
The consultants often share knowledge across industries, giving them insights and an edge in the market. This in turn gives rise to innovative problem solving, and an unmatched value to your organization.
Tools, KPIs, and more: The procurement consultants at Salahkaar are committed to using the rich tools, and best practices to help your organization.
Contact us today, to help design procurement strategies and solutions tailored to your company, goals, and culture.
CREATING VALUE THROUGH PROCUREMENT OUTSOURCING:
Before stepping into Outsourcing Strategic Procurement, it is very important to know the true Colours and long-term benefits of using a third party for procurement outsourcing.
In the last two decades, business process outsourcing has changed the structure of many organizations. Commonly, the companies outsource their routine tasks, activities processes, services, sales, or operations to a third party.
The BPO industry is more involved in offering an even broader range of services. These include strategically important ones mainly manufacturing or R&D.
Each stage of the procurement cycle involves multiple stakeholders, variable processes, various departmental goals and objectives, and copious amounts of administration. Any value, initially attached to a transaction or contract can be systematically eroded from the business. This occurs as the process grinds slowly and painfully onwards to an unsatisfying conclusion. But indirect procurement outsourcing will ensure the value not only sustains but flourishes.
Procurement outsourcing mainly involves a growing trend of corporate procurement strategies
The best way to create a thorough procurement outsourcing department can involve:
Access scales and capabilities they don't have in-house enact long-term changes.
Collaborations, as well as flexible outsourced business agreements based on trust transparency, and fairness. The focus on value creation and cost reduction will naturally follow (it's a win-win scenario).
Buying power and volume aggregation are achievable. The marketing department can utilize aspects if they know about it through partnerships. Business outsourcing indirectly frees up the time for direct procurement to optimize their strategically critical activities.
Corporate social responsibility (CSR) is easier when you are reviewing.
The most important point to be noted is delivering cost reduction efficiencies and value through robust outsourced indirect procurement.
The outsourcing of strategic procurement activities like supplier selection, contract negotiation, or specification management becomes wider.
Procurement outsourcing can span several activities from strategic to transactional.
It is the process of developing channels of supply at the lowest total cost, not just the lowest purchase price. Strategic sourcing expands upon traditional organizational purchasing activities to embrace all activities within the procurement cycle. These range from specification to receipt, payment for goods and services to sourcing production lines where the labor market would increase firms' ROI. Strategic sourcing processes aim for continuous improvement and re-evaluation of the purchasing activities of an organization.
Strategic and transactional procurement activities differ. Transactional procurement consists of routine actions such as material requirements planning, invoices, and documentation. While these are important, they are minimal in comparison to the value that strategic procurement adds to a business’s processes. Strategic procurement focuses more on the analytical aspect of a business operation, which in the long run, adds more value. A business needs to analyze the material requirements, sources that were selected, the relations with vendors, and the expenses.
Transaction processing is information processing in computer science that is divided into individual, indivisible operations called transactions. Each transaction must succeed or fail as a complete unit; it can never be only partially complete
Transaction processing systems consist of computer hardware and software hosting of a transaction-oriented application that performs the routine transactions necessary to conduct business. For example, systems that manage sales order entry, airline reservations, payroll, employee records, manufacturing, and shipping.
Strategic sourcing activities
Demand and specification management
Policies processes development and implementation
Developing and implementing category strategy
Supplier performance management
Supplier relationship management
Transactional procure to pay activities
Purchase orders processing
Material and services receipt recording
Performance monitoring (supplier finance)
Compliance monitoring (policies, contracts)
Accounts Payable processing
Supplier Masterfile setup and administration
Invoice processing and bill payment
Time and expense auditing
Technology and support system
Most of the time a lack of understanding results in incomplete deeds, wrong activities, and fewer incentives. Companies may pick the wrong partners that fail to ensure sustainable long-term savings.
To make strategic procurement outsourcing a success the company needs to take a highly systematic approach with three basic steps.
Strategic buying only in categories.
Precise understanding of the sources, their value, and how to unlock them.
Choose an outsourcing partner that is capable to address the source of value and defined the agreement that maximizes the chance of capturing potential savings
High-level approach for a strategic segment of categories
High- build on capabilities
Medium- build own capabilities or consider outsourcing
Low- Consider outsourcing
Ability to successfully manage categories in house:
Some categories may be a distinctive source of competitive advantage for the company, or such significance to quality requirements or customer value proposition that outsourcing them would create unacceptable risks to the business.