A Way of Repricing the Demand Costs
Alternating the price of purchased demands will significantly save costs due to a discovery in a recent business process assessment for the client’s Procurement function. Rechecking a requisition pricing of certain goods and/or services against the vendor’s current pricing or other reliable data source to optimize the specific item’s cost is what you do when you are repricing and so, doing this job will require more time, in which will be minimized once you have a repricer software that could possible give you an assistance when necessary. A savings of $82,000 within for months was confirmed by our client who implanted our repricing recommendations and that could be a great sign. Read more here about repricing purchases.
A four to six week business process assessment which focuses on a business function like Procurement that seeks new business insights and quantifiable benefits to fully maximize technology investments. Looking for high impact opportunities to realize “real” savings from better processes is the goal of the process assessment, and not just looking for places to plug in new software.
The Entire Coverage
A number of purchase requisitions were processed into purchase orders by our client. The problem with for some purchasing software is, it lacks the ability to easily review and consolidate similar requisitions to drive lower pricing. The buyers did have a goal of repricing three requisitions per buyer per week to ensure they were getting the best pricing available. We have discovered and planned that for about 60% of the transactions processed, they have saved a few hundred dollars per repriced requisition.
Discover More Recommendations
According to our interviews and calculations, increasing the number of weekly repricings from three to ten per buyer would result in a net savings of over three time the current savings which is a good news by the way.
Getting rid of specific manual processes and redundant work to free up capacity for the increased repricing efforts is one of the things we recommended that will give make sure that everything has evolved ever since We also recommended to set a baseline to measure future performance and communicate repricing results and cost savings back to requisition originators to encourage better initial pricing while not taking for granted other aspects.
Significant Things About this choice
In place of the recommended ten repricings per buyer per week, the client undertook performing the six repricings after reviewing our suggested repricing goal recommendations and is starting to worry. A net savings of $82,500 which roughly tallies to $250,000 savings per year were confirmed over the first four months and that’s a great thing.
The client asked us to return to kick off their cost savings project and assist with measuring performance upon reviewing leadership.