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Premikati Marketplace best Procurement Software for SMBs

Don’t Let These 8 Things Happen To Your Procurement Team

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Is your purchasing software pulling its weight? Poorly executed purchasing platforms not only cost you time and money, they put your company at legal and reputational risk. If any of the following sound like you, it might be time to kick your lazy procurement software to the curb and trade up for a real man—uh, business marketplace. We meant business marketplace. 

Spending 19 hours reconciling invoices

PO recon—while it sounds like some cool Navy SEAL mission, the reality is far less glamorous. In 2020, there is literally no reason to manually reconcile purchase orders with invoices or your accounts. Process automation here saves time and prevents costly mistakes, so you can focus on what really matters in your business instead of putting out fires or wasting time using outdated methods. Automated reconciliation ensures that everything matches up all of the time, without you ever needing to think about it. 

Buying from the wrong supplier

Your purchase order is a legally binding contract—so what happens when you buy from the wrong supplier? Not only might you have to adjust the purchase to show the correct supplier (which is going to be a real doozy if you’re manually reconciling invoices and it’s already been reconciled) to keep a proper audit trail, you may also face legal repercussions. 

Alternatively, you may be buying from a supplier that’s wrong for you. Perhaps you could reduce costs by using a supplier for multiple types of purchases in order to facilitate a loyal working relationship. Or, maybe you just picked the supplier that costs way more than the rest. The Premikati Marketplace can help you cut costs by offering new sources of savings via a list of high quality, trusted suppliers—many of which offer up to 35% discounts on frequently purchased products. The right supplier is waiting for you at Premikati Marketplace. Already have a couple of the right suppliers? We can add your own suppliers too!

… Or a supplier you don’t even have a contract with

Maybe your contract has expired. Maybe it was never a valid contract at all because its still sitting in a pile on someone’s desk, waiting to be signed and faxed and filed. Do you know which contracts are active and valid? 

Don’t subject yourself to the legal risks that come with doing business without valid contracts. 

“On average, 94% of tail spend comes from uncontracted suppliers.” —Premikati Marketplace

With Premikati Marketplace, you can automate old, analog systems and see which suppliers you’re working with—with the click of a button—in order to gain both efficiency and visibility.

Buying a mountain of stuff you don’t need

Would your warehouse and office closet make Marie Kondo giggle with maniacal glee? Space is a precious commodity especially as consumers and other businesses expect faster and more personalized experiences with every passing day. Every dollar spent on useless things that you don’t need is a dollar you can’t invest in moving forward with your business or keeping an edge on your competitors. 

With good B2B procurement software, you can easily see what you’ve already bought so you don’t double (or triple!) up on what you need.

Buying things that are probably illegal

You want a supply chain that is socially responsible and legal at every link. The Premikati Marketplace is underpinned by SAP, a world-renowned company that is a leader in sustainability.

Shipping your orders to your house

There’s nothing else to say about this. You know who you are. Prevent it with a good procurement platform like Premikati Marketplace. 

Tight budget with no approvals

Especially if you’re a startup or you’re maximizing growth or perhaps if you’re using a zero-based budget, money can be tight. Competition can be stiff. And sometimes, to make the move that will really help your revenue, differentiate you from a competitor, or skyrocket your growth, you have to make swift decisions. If your purchasing processes are bogged down by archaic methods and you’re waiting by the telegraph—err, email—for your PO approval, guess what? Your opportunity may have already passed. If you were making hand sanitizer in January 2020, you better bet you needed to scale and scale fast before the supplies were gone. 

With a good procurement platform, you can control your spend to the cent but also implement automated purchase approvals. Stop leaky spend and without slowing progress… that’s the dream, eh? 

Multiple logins

How many users and passwords do you really need to fulfill your procurement needs? Stop sacrificing security because Lilly is keeping her password taped to the bottom of her keyboard because she has too many to remember. Free up your tech support from endless verifications and password changes. Keep your purchasing processes safe and efficient by reducing the number of accounts you need for purchases.  With the Premikati Marketplace, each member of your procurement team will only need one login total, not one login for EACH supplier portal.  One and done – quite a nightmare saver for your tech support team.

About Premikati

Get what you really want from your purchasing software. The Premikati Marketplace offers procurement that is as intuitive as online shopping with the robust data of Fortune 100 companies and extensive customization options, all with no IT required and no commitment. 

You can order what you want—where, when, and how you want it. Diversity filtering? Sure thing. Support local? Absolutely. We even support custom catalogs and customer-specific vendors.

Merge that with full spend control and visibility, real-time reporting and analytics, custom approval flows and automation, and you’ll find a best-in-class software that’s tailor-made for small- and medium-sized enterprise businesses. 

Premikati scales seamlessly with your business with no impact to end-users and no additional training required. We have prices to fit every budget, and we can have you up and running in hours. 

All of this with white-glove customer service included at no charge, so you can always trust you can talk to a real person when you need them. 

Don’t settle for anything less. Contact us today!

 

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All You Need to Know About Impact Sourcing

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There isn’t any question that inclusive corporate practices and business shared values have been highlighted in recent years as customers increase their search for companies who induce rich social impact throughout their supply chain and workflows. In fact, contemporary organizations risk falling behind the curve if they don’t adopt impact sourcing in their processes.

For several years, companies looked at deploying “social good” policies as a type of afterthought or even icing on the cake. The main focus was profit. Now, things are changing. Many millennials, and gen Z’ers, actively search for businesses who have long-term strategies around social impact.

Today, embracing and embedding social impact into business processes is no longer an option – it is mandatory. Even prospective employees only want to work for companies that have infused social good practices into their overarching policies.

Not to mention, in an increasingly competitive marketplace, consumers have countless options right at their fingertips. In the end, they will choose to patronize a business with values that align with theirs. Now, let’s talk a bit more about impact sourcing.

What is impact sourcing?

Many industries are in the position to improve their business practices. Impact sourcing simply means employing individuals who come from a disadvantaged background, and providing them with opportunities they might not have otherwise received. 

There are billions of people who just can’t access professional business opportunities because they also don’t have access to higher education. For instance, Africa may have the largest workforce on this planet, but they certainly don’t have enough jobs for their populations. Impact sourcing offers employment to people who live in locations with persistently high rates of unemployment. 

Further, these are people who may live in rural areas, or even slums, and don’t have access to secondary education. So then, as these types of people receive better career opportunities – and higher wages – they can actually go to college and be better able to help their family members who are in need.

Impact sourcing is gaining traction

Led by organizations such as the Rockefeller Foundation and Business for Social Responsibility (BSR), impact sourcing is also proving advantageous for companies who adopt this particular business practice. According to BSR, “Impact sourcing is not philanthropy; it is a business practice that seeks to maximize societal and business outcomes.” There are also some practical applications you can implement within your company. 

  • Focus on the people 

A successful impact sourcing program should not be about the numbers, or even the algorithm, it should be about the people. These are not automated robots, but every employee has unique gifts and talents they can bring to your organization. And, through their tenure with your business, they can spread the benefits throughout their communities. Not to mention, you are accessing a talent pool inundated with motivated individuals. Moreover, you don’t have to change your organization’s values simply because you are hiring in another country or working with a supplier in a disadvantaged area.

  • Business improves through long-term relationships

It always helps to remember that, when it comes to business, the bottom line is still critical. You certainly want to be known as a company who prioritizes social impact. Yet, that shouldn’t be the end all and be all. Your business should still ensure your customers get the quality they’re accustomed to along with the right price and the right customer experience.

Invariably, happy employees are much more productive and they are much more loyal to a company. As a result, they have the potential to become more skilled at their roles which leads to getting a larger amount of work done in less time. The best way to improve happiness and motivation is to offer an opportunity to someone who – under normal circumstances – would not have received such an offer.

Turn your company into a force for good

There is still limited understanding about the various populations – throughout the world – who need more help. In this regard, it takes time and research to determine where your impact sourcing program can make the most impact.

Participate in conversations with people from disadvantaged communities to gain a better understanding of their experiences and challenges. Partner with organizations such as the Global Impact Sourcing Coalition (GISC). Currently, the GISC is challenging its member companies to start hiring at least 100,000 workers before the end of 2020. The GISC also offers toolkits for download which include case studies and best practices. Now, you can design your impact sourcing strategy. 

Next, host job fairs in disadvantaged areas. If your company can’t be there physically, then partner with local organizations. Other ways to help include offering guest lectures, online training, and mentorships. Change people’s lives with training and education.

Remember that disadvantaged communities aren’t only found in developing countries. There are disadvantaged individuals in developed countries, as well. 

Final thought

There is no greater feeling than knowing your company can help disadvantaged individuals out of poverty all around the globe. Impact sourcing can provide some stability in war-torn regions when opportunities for career, education, and training increase. When a person feels secure, they also gain a feeling of peace. Just take a look at the change in formerly war-torn regions of southeastern Europe where many citizens now work remotely for companies all over the world. As the global skills gap continues to grow, it’s time to consider the talent outside of the traditional pools.

 

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Picking the Right Technology Partner

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Not all technology partners are created equal. The best run companies attract and retain top-notch talent and the on-staff management team knows how to see a project through to success. Lesser companies simply want to cash checks.

By following the eight considerations when selecting a partner below, however, you’ll greatly increase your chances of finding a high-quality technology partner that can deliver.

1. What needs to be done?

First, make sure you understand your project. Many companies and executives have a vague idea of what they are looking for. However, you want more certainty when writing an RFP and reviewing potential partners. Breakdown as many details, features, and functionalities as possible. Consider the user journey, integrations, and future needs as well. Make sure you include all of the above in your RFP. Loop in your on-staff technology and software experts to source their feedback.

2. Put forward a clear and comprehensive RFP

For many companies, the journey to finding an excellent technology partner starts with the Request-for-Proposal (RFP). This document outlines what you need and who you are as a company. You want to provide enough details to give companies a clear sense of the project and scope without bogging potential partners down with unnecessary or redundant information.

3. Price is just one factor

Price is an important consideration but one of many. Make sure you examine other aspects and ensure that no matter the price you pay, you’re getting a good value. Also, make sure you know the “true cost.” Some vendors quote a given price but end up going well over budget, and you may have to pick up the tab. Others tack on costs, like implementation and support. Understand the total costs of the project before signing anything.

4. Deadlines and timelines

Ask the business for a reasonable estimate of the timeline. Don’t simply take their word for it, however, and also ask about projects in similar scope and how long they took to complete it. Further, inquire about projects that went over initial timelines and what happened. What caused the delays and how did they resolve it? Remember, however, quality is often more important than speed. A hasty project may result in poor software that you have to grapple with for years.

5. Ensure that potential vendors are transparent

You want to work with vendors who are honest about their resources, time management, and capacities. Additionally, ask for a clear roadmap with deliverables and goals that the partner feels is reasonable. On your end, the roadmap should be clear and easy to decipher.

6. Review customer testimonies

Great partners can usually offer a lot of testimonies. Past clients, employers, and partners can vouch for their skill and success. Ask for a portfolio and a list of past clients you can contact. When you contact clients, dig deep and inquire about short-comings, hiccups, and more.

7. Check for a warranty or guarantee

Great companies often stand behind their products as a point of pride. It’s a good sign if a company offers extensive warranties, guarantees, or other assurances. On the other hand, if a company offers no guarantee, be wary.

8. Look for social good

This is about converging profit and purpose. At Premikati, we believe every business should be engaged in creating social value. Do we believe we can accomplish both our business goals while empowering society’s goals? The answer is yes, and this is one of the reasons why we partner with SAP.

Invariably, every industry must decide whether to put values over profit. As a female-owned business, Premikati wants to add values and ideals to every choice we make to ensure socially responsible decisions. As the saying goes, “Birds of a feather, flock together.” SAP continues to make a commitment in service of local and global communities. SAP believes every individual brings a unique set of skills, talents, and experiences to induce a truly dynamic workforce. In fact, they have pioneered the effort to promote neurodiversity in the workplace by starting their Autism in the Workplace program in 2013. This program has had major success in hiring employees on the autism spectrum, with a 90% retention rate, to help ensure a much more inclusive workplace for all.

Moreover, SAP supports communities in many ways by contributing to a wide variety of organizations, by supporting employee volunteerism throughout the year, and by partnering with non-governmental organizations (NGOs). For instance, SAP offers a “Dollars for Doers” program with matching gift grants, dollar for dollar, for active employee volunteers to the organization of their choice.

Take-Away: Diligent effort now can prevent future mistakes

There’s no way to guarantee that you’ll find the perfect technology partner. Still, by considering all of the above, you can greatly increase your chances of success. Choosing the right partner is a vital step to ensuring a good project outcome, so take your time, examine things closely, and find the partner who aligns with your values and objectives.

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Procurement Lessons in the Midst of a Pandemic

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As the COVID-19 pandemic spread throughout the world, supply chains and procurement saw their traditional modeling around price negotiations, contract compliance, and cost control become overwhelmed with unprecedented challenges. Through this time, Premikati has learned that managing risk is paramount.

Suddenly, supply chains and procurement have been disrupted in ways we have not seen in our lifetimes. Many large and small entities had to immediately reconfigure their manufacturing, and procurement, to producing, distributing, and meeting the most essential healthcare supplies and foods to ensure populations are safe and healthy.

All of these actions required identifying new suppliers, vetting them, and ensuring enough liquidity to purchase necessary goods at scale. Further, unused inventory needed to be addressed as well.

Invariably, experts from every field prognosticate on how COVID-19 has changed our lives – and our economies – forever. The many blanket, and even extreme, disruptions to our work lives only serves to convey that we are still all playing a role in this huge experiment where technology has led the transition from traditional office environments to remote working and virtual happy hours. Is the future here, right now?

At Premikati, we don’t have any exact predictions around how this pandemic will impact procurement processes over the long term. What we do see is an opportunity to determine how digitization and new platforms can help companies gain a competitive edge once we reach the other side – and, we will.

Naturally, we all hope the pandemic will end soon and life will return to normal – as it has in previous disaster scenarios. Yet, it appears that many facets of our economy will never return to the pre-pandemic version of normal.

At this point, technology can help solve many of the issues which the pandemic has brought to the forefront. It’s time to change the mindset and work in a more collaborative and strategic way.

History in the making

For the first time in modern procurement, and supply chain history, a pandemic created a global impact on supply, demand, and the available workforce simultaneously. In order to revive the supply chain, and get things back to efficient processes, we view automation as a critical aspect.

In light of the global cracks in the supply chain, automation can help to increase productivity at home and with alternative suppliers who are located much closer to the communities they serve. In fact, with automation, many processes can be successfully executed domestically while creating new job opportunities for tech-savvy employees.

We also consider how important data will be not just now, but for the future of work. For procurement, greater connectivity demands an acceleration in digitization across the board and a utilization of collaboration tools, industrial IoT, and AI-driven insights to improve agility, capacity, predictability, and availability.

What does the future hold for procurement?

At Premikati, we truly believe that companies who invest in strategic technologies will come out of these perilous times with a competitive and profitable edge. Not to mention, your in-house team can ultimately become much more productive.

The COVID-19 pandemic has been a wake-up call for procurement in terms of addressing supply chain risk and business continuity. Perhaps it’s time for full-scale deployment of connected intelligence.

Yet, sourcing is just one side of the issue. Companies should also understand the supplier side. When you can comprehend the issues affecting your suppliers, then you can more efficiently ward off potential issues in the future. Some of the most critical components for the supplier side include:

  • Tier 1 supplier risk
  • Ensuring an alternative supply network
  • Efficient workforce planning
  • Bolstering the supply chain
  • Improved planning
  • Business continuity amidst plant closures
  • Production flexibility
  • Capacity security
  • Global planning

Think about your non-negotiables: Customers, employees, products, services, lines of business, and more. Which of these are the most critical for business preservation?

Without adequate plans in place, many businesses went towards overadjusting where they would increase inventory across the board – just as consumers were doing the same hoarding toilet tissue, masks, disinfectants, canned goods, soaps, and hand sanitizers. Nonetheless, overadjusting can come with consequences such as excessive inventory during a time when consumers have cut back on spending.

Disruptions have occurred upstream and downstream. The most successful companies will work on improving visibility, agility, and responsiveness using strategic analytics. As a result, you can determine how you can mitigate the risks and begin recovery quickly.

At Premikati, we realize that every company is at a different stage in terms of dealing with the impacts of the pandemic. Not to mention, problems can vary depending on region. We want to offer guidance on where to find opportunities in the midst of unprecedented challenges. Quick action is essential right now.

Premikati can help your organization control the narrative and the outcome, complete with a thriving environment. Working through this crisis, we are prepared with new business models created to define the future of work in procurement and for supply chains.

Final thought

The organizations with the highest likelihood of weathering this storm are those who have achieved the optimal balance between short-and-long-term strategies. During a crisis, the most common mindset is the short-term one. On the other hand, being forced to operate differently has helped many businesses see what they can do and also, what they need to do.

More than just adapting to the current environment, become a market shaper and take part in the reinvention.

Premikati hopes that by sharing what we’ve learned about this pandemic, that we can help strengthen your procurement processes. Our solutions are focused on accelerated efficiency, resiliency, mitigation, scalability, and flexibility. We are all facing this together, so let’s collaborate.

Future Proof your Supply Chain

Future Proof your Supply Chain

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Future Proof Your Supply Chain

Over the past two months, every government and healthcare facility around the world has worked tirelessly to learn more about COVID-19, to treat afflicted patients and most of all, to stop the spread. At the same time, global importers and exporters have also struggled with the pandemic’s unprecedented impact on their supply chains.

Even with the lessons we have learned from the SARS outbreak, or the Swine Flu outbreak, or the 2011 Fukushima tsunami, the logistics concerns and risk management strategies have been put to the test by COVID-19.

Given the scale of the pandemic, it is difficult to rush into the creation of a methodical supply chain. Nonetheless, staying ahead means taking the lessons learned and planning for a future with the possibility of similar incidents.

Invariably, toilet paper has been the one commercial product which everyone can tie to the global panic surrounding the coronavirus. You would think people would be buying pallets of hand wash, but it was oddly toilet paper. We’ve never seen so many news headlines about toilet paper in modern history.

Despite the illogical rush, many manufacturers did not halt their production and distribution of toilet paper. Yet, there are many other products with halted production due to supply chain disruptions. Now, toilet paper is widely available once again.

Still, with a deeply linked global supply chain, operating in tight margins, this is prime time for a significant reordering. The tissue hoarding is just one example.

As a result, it is never too soon to start planning for the next potential crisis. Not to mention, global economies will be in recovery mode for the foreseeable future. Even as nations open back up, things won’t bounce back to pre-pandemic levels just yet. If the recovery period is protracted, then it will require increased levels of coordination and orchestration.

The uncertainty is still here. But, with planning, you can help facilitate a more significant bounce back. In addition, the actions you take now will set the stage for sustained performance and growth once the pandemic is fully mitigated.

Implement risk management systems

Regardless of how great the current implications are, risk management is still a priority. The tools which should be in place include credit risk and supply risk. Think of the lessons you learned from the Great Recession in 2008 to get a sense of how to address client and supply-side credit risks. Keep things in balance without any overlap.

Increase visibility

One of the keys to supply chain recovery is by increasing visibility so that you can make data-driven decisions on a timely basis using real-time data. To achieve this, look at deploying control towers to send alerts, insights, and data. If you can put these types of control towers together quickly, even better. Utilize control towers powered by artificial intelligence and machine learning which provide advanced analytics.

Next, you want to look at your direct and indirect supplier base and identify areas with increased levels of supply chain risk. Review your KPIs throughout your extended supply network, contracts, bottlenecks, stock-outs, and overall performance with the objective of working towards better synchronization.

Then, improve real-time visibility around order fulfillment while looking for areas prime for improvement such as better delivery estimates or improving expectations around product availability to even accessing inventory outside of primary fulfillment centers.

It’s also extremely important to have better visibility around the logistics infrastructure, backlogs, delays, capacity constraints, inventory levels, and the material flows. Figure out where you can improve customer service through these processes.

Further, take a look at your factories and expectations around any supplier constraints of inbound materials along with the quality of materials. How are asset utilization and labor scheduling affected by COVID-19? What is production like across various facilities? Are their quality control issues? Can you make use of advanced algorithms to address inbound quality issues, as well as finished goods quality issues moving forward?

Analyze your supply chain infrastructure and design

Before the pandemic, most organizations worked with the assumption that raw materials were always readily available and accessible for global production. It seemed a one-size-fits-all supply chain perspective. Although, COVID-19 has thrown a wrench in this philosophy.

So then, instead of continuing to use static operational systems, look at dynamic distribution capacity. Find local supply sources in all of your major markets. Stop relying on single sourcing. Even if single sourcing has kept costs low, we are living and will live in a different world after the pandemic.

Research suppliers in local markets in the event you need to have a secondary source. As a result, you can diversify your supply chain and rely on more dynamic distribution.

As you can see, the only thing you can rely on is change.

Break up your supply chain. If your supply chain is too long, you can expect larger issues. Take the toilet paper example again. Production has continued, but store shelves remained empty because brand owners were not getting replenishment alerts fast enough even though they normally sit on at least two weeks of inventory. If there are a larger number of nodes affected, then the bullwhip effect comes into play with distorted signals and an increase in demand error.

Separate fact from fiction

Right now, your supply chain may be experiencing the bullwhip effect of unpredictable buyer behavior, such as the run on toilet paper and related products such as flushable wipes. Or, the panic-buying of staple items such as rice and beans, disinfectants, and medicines. There is a known-unknown matrix in the pandemic scenario. But, it’s still vital to separate fact from fiction, don’t make assumptions.

Increase agility around evolving customer demands

Manufacturers could not immediately respond to the toilet tissue shortages because they do not rely on shelf signals. At the same time, demand for luxury items tumbled. The COVID-19 pandemic has made the estimation of final customer demand more challenging but also more significant.

Figure out if the demand signals you get are coming from your direct customers, and if they reflect the pandemic uncertainties. Create a demand-planning team, using analytical tools, to ensure you have a dependable demand signal to ensure you are providing adequate supply.

In addition, use marketing insights, databases, and customer communication platforms to better understand the demand straight from your client’s customers. If data sources are limited, then use direct communication channels to plug the discrepancies. Furthermore, use stringent processes that can quickly adapt to evolving scenarios. Remember to do the following:

  • Create an accurate demand-forecast strategy
  • Incorporate market intelligence
  • Use analytical forecasting tools
  • Create a dynamic monitoring system that facilitates quick mitigation of forecasting errors

Many customers were buying based on shortage predictions. If needed, decrease the size of the orders, but make them more frequent to ensure a higher level of agility when needed and the ability to manage the highs and lows of varying demand.

Optimize both production and distribution

It’s crucial to employ scenario analysis to detect various production scenarios for understanding their operational and financial implications. And then, production should begin by making sure your employees are safe, offering the option for remote work if possible, and listening to your employees’ concerns.

Plus, scenario planning is crucial to determine the implications of a long-term shutdown. How will this affect available capacity and current inventory levels? Figure out which products are the highest in demand – strategically – taking into consideration that health and human safety are at the forefront of customers’ minds.

Further, how will these current implications impact future recovery? Draw a more comprehensive analysis with input from strategy staff, marketing, sales, and operations to contribute to macroeconomic forecasts. By taking these types of actions, you can better align production and supply chain with the expected demand – depending on the circumstances.

Improve deployment of dynamic inventory

For the most part, companies often have a primary distribution center to serve its customers. Then, historical demand data is used to optimize the network. So then, customers get the products they want, when they want them. But, the pandemic environment is anything but normal with much higher supply-side volatility and surging demand for certain types of products.

As the economy rebounds, there will be inventory imbalances present throughout the network. As a result, consider alternative routes to secure your logistics capacity. Regions will emerge from quarantine piecemeal, which means that there will be an irregular supply chain for an extended period of time. Think of how you can diversify your distribution networks and how to address regional availability. Create alternative distribution centers now.

In conclusion

Take notes from corporate investors who have been working on reducing their stock portfolio volatility and re-evaluate cumbersome overseas supply chains. Whether we are facing a pandemic, or a trade war, organizations in every sector must work at improving supply chain risk.

The only way to mitigate the impact of unpredictable pandemics is with thorough preparation. Even before the next crisis occurs, your contingencies should already be in place. The recovery may be V-shaped, or it could take longer and resemble a L-or-U shape. Still, recovery is coming. In the meantime, this is the word of the day: Diversification.

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Cut Procurement Costs – Not Quality

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A New Year’s Resolution to Cut Procurement Costs, Not Quality

 

Many people take on personal new year’s resolutions such as to lose weight, but what’s often more important than the number on the scale is someone’s overall health quality. Similarly, many businesses want to cut costs, but focusing just on reducing expenses may not be the most sustainable way to grow overall.

For example, switching to a vendor that supplies lower-quality products, such as for IT devices, may reduce costs in the short-term, but if those devices break down faster, it can cost more overall to repair or replace them.

Thus, companies looking to save money in 2020 should make a new year’s resolution to cut procurement costs without cutting quality. To accomplish this task, businesses can leverage:

    • Purchasing Power: Either by consolidating spend with fewer vendors or by leveraging group purchasing organizations, companies can often obtain a discounted rate for purchasing the same products and services. For example, making tail spend purchases through a B2B marketplace can enable businesses to obtain better rates from suppliers based on the combined spend of the marketplace’s multiple clients. If a small or medium-sized business tried to negotiate rates based on just their own spend, they would have less leverage than a marketplace has when setting rates with suppliers.
    • Spend Insights: As companies improve their ability to track spending, they can more easily identify pure cost-saving opportunities that have no bearing on product or service quality. For example, using spend insights to identify erroneous purchases, such as incorrect pricing or accidental orders, allows companies to reduce costs without affecting any other areas of their business. Similarly, spend data may show that companies are going over budget with purchases that do not add much value. From there, businesses can implement stronger cost controls so that unnecessarily expensive purchases do not go through.
    • Productivity Gains: In addition to the direct cost savings that can come from negotiating better rates and cutting waste, businesses can also save on expenses and potentially increase revenue through productivity gains. For example, if a business can process orders and invoices more efficiently through a procurement marketplace, they may be able to reduce the costs of using a third-party accounts payable provider. Moreover, freeing up employees’ time to focus on more revenue-generating tasks can help companies grow, without adding expenses.

Start Saving With Premikati Marketplace 

To simplify tail spend purchasing and cut procurement costs without hurting quality, businesses can turn to Premikati Marketplace, which runs on SAP Ariba™ Buying and Invoicing. The platform provides an easy way to access great pricing on quality products and services, while also allowing businesses to implement cost controls, gain rebates and streamline the overall buying process. Altogether, businesses can reduce tail spend costs by around 30% through this marketplace.

To learn more about how Premikati Marketplace can help you achieve a new year’s resolution of cutting procurement costs without cutting quality, please get in touch with our team.

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