When we start discussing indirect cost management for the first time with a Board of Directors, we're often told that they think they've got "a great deal" or that "they're really busy at the moment so now isn't the right time to consider joining a Buying Group."
For those who agree to join however, it soon transpires that their great deals weren't necessarily so great after all. And they also discover that far from having to spend more time, our support has actually saved them a lot of time.
But how is this so? Well first of all, most companies have never compared their "deals" with other companies. So other than being told by the suppliers, they can't validate their claims. The harsh truth is that most small and medium sized companies aren't attractive enough to the supply markets to achieve the best value deals because they don't spend enough. Only by joining forces with others can they achieve a step change value improvement. That's the role played by a Buying Group.
And what of the Time argument? So many organisations forget how much time is taken conducting procurement exercises. In the need to 'get 3 quotes' precious staff time is taken up, even though the best deals in the market place will still elude them at the end of the process for the economies of scale reason mentioned above.
Imagine what benefits your company would enjoy by reallocating staff time previously focussed on the necessary evils of indirect spend towards more business critical issues which will help grow the business profitability.
So we say to Boards of Directors: save time and money by joining a Buying Group. Tap into its buying power AND refocus your staff on what's core to your business success (they'll be more motivated too!) You will always be busy, there will never be a moment when you're time rich so let's act today. Besides, what would your business do with more cash and more time? For more details get in touch...
by Matt Roper | 22 June 2015