Improving the efficiency of sourcing companies is a key means to improve corporate profits, among which the leverage potential of procurement costs is huge.

However, when realizing the cost reduction and efficiency enhancement of procurement, it is first necessary to be familiar with which factors affect procurement costs and procurement efficiency. The editor has sorted out some of the main factors and believes that it will serve as a good reference and reference for the cost reduction and efficiency enhancement of corporate procurement.

1. The quality of the personnel of the sourcing company
In recent years, the role of purchasing companies has undergone great changes. In the past, the role of procurement was mainly at the administrative or transactional level, but now, sourcing companies are beginning to play an increasingly important role at the strategic and commercial levels.

the efficiency of sourcing companies



The quality of the personnel of a sourcing company determines the level of procurement and supply chain management of a company, and determines the degree of achievement of the company's strategic and commercial goals.

2. Planning of procurement
In most sourcing companies, poor planning of procurement is common, and the procurement demand is an urgent demand as soon as it reaches the ground, which often results in the procurement department being unable to coordinate procurement work.



Procurement is in a state of disorder. Repeated confirmation of demand, procurement failure, etc. lead to higher costs and lower efficiency.

3. the accuracy of the procurement budget
Among the sourcing companies, if the procurement budget preparation quality is not high, relatively extensive, lack of scientificity, rigor and operability, late approval time and large adjustment range, etc., it will cause a large number of procurement projects to be out of budget. , May lead to high levels of emergency and temporary procurement outside the procurement budget, seriously affecting the planning and timeliness of procurement, and will inevitably affect the efficiency and cost of procurement.

4. the accuracy of the demand plan
Planning is the engine of the supply chain. Many implementation-level problems are actually caused by the inadequate and inaccurate plans of the sourcing company. Demand planning is the top priority of the plan, and it is the key link to effectively connect demand and supply. Demand planning has a significant leverage effect on supply chain performance.

The demand planning accuracy rate of the sourcing company has been improved, which not only improves the order delivery rate, reduces inventory, but also reduces operating costs, procurement costs, logistics costs, and improves production efficiency. The inventory is reduced, the capital occupation is reduced, and the capital cost will naturally be reduced. When the delivery is completed, the cost and inventory are reduced, and the profit margin of the company will naturally increase.

5. Quality of procurement documents
The quality of procurement documentation has a greater impact on procurement costs and efficiency. For example, if the procurement requirements are not clearly formulated, the supplier is likely to ask the purchaser to clarify; the supplier’s qualification requirements are unreasonable, and it is very likely that no supplier will participate in the bidding and the project will fail; the supplier’s qualification requirements are likely to be inclined It will cause doubts and complaints from suppliers. These situations require corresponding manpower and time, which will reduce the procurement efficiency of the sourcing company and increase the procurement cost.



The above are some of the factors that affect the efficiency of sourcing companies. How to reduce purchasing costs and provide purchasing efficiency requires continuous improvement in business capabilities in practice.


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