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Transformational approach to procurement

As said in the previous article - lemon has been squeezed out and additional price negotiations brings a little. Different approach to procurement is needed, for example:

Purchase of car fleet - prices of products and services has been well squeezed in the previous years. Outsourcing often brings no real savings. The only way is to think about overall approach to purchasing the fleet:

  • who needs company car, for what need

  • who needs company car and who prefers car allowance or use private car for business purpose

  • how well utilized our car pool is - how many % of time vehicles are used?

  • isn't it cheaper to ride a taxi or train than use company car?

  • how about investment into an online reservation system?

Better utilisation of company cars saves much more costs than outsourcing or just another RFQ. Facility management - similar to cars, the facilities rentals and services are getting more expensive

  • moving to a cheaper address is very expensive - not only the moving itself, but also hidden attrition caused by many people leave company because they do not want to travel to the far location;

  • the only way to save substantional costs is reduce rented area, utilize available area efficiently, sale of unused space etc.

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