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Aug 15

Premikati Reaches Inc. 5000

By Press No Comments

Premikati Inc. is pleased to announce its inclusion in the prestigious Inc. 5000 list of the fastest-growing companies in the United States for 2023.

INDIANAPOLIS, INDIANA, UNITED STATES, August 15, 2023/EINPresswire/ — Premikati, a beacon of innovation and a dominant force in procurement management consulting is elated to announce its inclusion in the Inc. 5000 list of the fastest-growing companies in the United States. This highly sought-after distinction places Premikati among a select echelon of forward-thinking organizations that are not only shaping business trends but also pioneering unexplored avenues within the industry.

Inc. 5000 Reward
The Inc. 5000 list represents companies that have driven rapid revenue growth while navigating inflationary pressure, the rising costs of capital, and seemingly intractable hiring challenges. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other household names gained exposure as honorees on the Inc. 5000 list. Companies are ranked according to their revenue growth rate over three years. To qualify for the 2023 Inc. 5000 list, companies must have been founded and generating revenue by March 31, 2019. They must be U.S.-based, privately held, for-profit, and independent as of December 31, 2022. This year’s Inc. 5000 companies have added 1,187,266 jobs to the economy over the past three years.

“Our place on the Inc. 5000 list is not just a testament to our growth but a validation of our commitment to relentless innovation and excellence,” affirmed Marisol Buchanan, CEO of Premikati. “We see this recognition as both an honor and a challenge to continue pushing the boundaries of procurement technology and client satisfaction.”

The Culture

Premikati, with its diverse team of procurement professionals and deep-rooted expertise in SAP Ariba™, has been at the forefront of technological advancements. By merging traditional procurement wisdom with modern technological tools, Premikati crafts solutions that transcend ordinary boundaries, ensuring client success.

In recent years, the company has not only demonstrated significant growth but has also unveiled groundbreaking innovations that reinforce Premikati’s status as a visionary leader in the industry. The inclusion in the Inc. 5000 list exemplifies the company’s unwavering focus on creative problem-solving, customer-centric approaches, and dedication to cultivating a culture of continuous innovation across a variety of industries, including Life Sciences, Consumer Products and Goods, High-Tech, Wholesale Distribution, Healthcare, as well as the Private Equity space.

“The future of our company is incredibly bright,” continued Marisol. “With a dedication to inventiveness and adaptability, we look forward to further enriching our portfolio of services, venturing into new markets, and maintaining our reputation as an industry trailblazer.”

About Premikati
Premikati is a leading procurement management consulting firm, specializing in entire procurement business and legal process outsourcing and implementing SAP Ariba and Icertis software. In Indianapolis, Indiana, Premikati’s commitment to innovation sets it apart, offering tailored solutions that marry the latest technological advancements with timeless business wisdom. Premikati paves the way for clients to achieve growth through efficiency and insight.

Jun 19

Unlocking Value through Procurement in Private Equity

By Private Equity No Comments

The era of Private Equity is upon us, and it is redefining traditional business paradigms.

In 2022, the private equity industry saw a record-breaking $1.5 trillion in dry powder, demonstrating the escalating growth of PE firms worldwide.

Today, these firms are not only focused on financial restructuring but are also keenly optimizing business processes to unleash untapped value – among these processes, Procurement stands out as an area ripe for reinvigoration and efficiency.

The Procurement Dilemma

The procurement process, fundamental to all businesses, is often riddled with inefficiencies and bottlenecks.

From long procurement cycles and lack of spending visibility to poor supplier management, these challenges translate into lost value and opportunities. Gartner reports that businesses, on average, can save up to 20% of their total spending by optimizing procurement.

Imagine the fiscal impact and competitive edge that such savings could bring!

Private Equity: The New Catalyst, Procurement

Given these potential savings, it’s no surprise PE firms have turned their gaze toward procurement. They are uniquely positioned to drive changes by leveraging their investment and operational expertise. However, this transformation isn’t without its hurdles. It requires deep knowledge of markets, suppliers, and commodity prices. Coupled with potential resistance to change within the portfolio companies and the need to manage compliance and risk, the road to procurement optimization can be winding.

Unleashing the Power of Procurement in Private Equity

Despite these challenges, the benefits of integrating Private Equity into Procurement are multi-fold:

Cost Savings

The most apparent benefit is cost savings.

By streamlining procurement processes and optimizing supplier relationships, PE firms can drive significant cost savings. These savings can directly impact the profitability of their portfolio companies.

For example, a study by The Hackett Group revealed that world-class procurement organizations operate at 22% lower labor costs than their peers.

Enhanced Efficiency

PE firms can streamline procurement processes, reduce procurement cycles, and enhance overall operational efficiency.

McKinsey & Company highlights that digitizing supply-chain operations can reduce errors by up to 50% and administrative costs by up to 80%.

Risk Mitigation

An optimized procurement process can better manage supplier risks. This mitigation ensures continuity of supply and reduces the potential impact of supply chain disruptions.

As reported by Deloitte, 85% of global supply chains experienced at least one disruption in the past 12 months, underlining the importance of effective risk management.

Value Creation

Ultimately, by addressing procurement-related challenges, PE firms create additional value in their portfolio companies.

Research by McKinsey suggests that top-quartile PE firms generate up to 30% more EBITDA growth in their portfolio companies compared to other PE firms.

A Future Powered by Procurement in PE

The integration of Procurement in Private Equity is a paradigm shift, but a change that is rife with value. As companies look to stay competitive in an increasingly digital and globalized world, the need for cost-efficient, streamlined, and risk-averse procurement processes is paramount.

In the ever-evolving landscape of global business, it is the enterprises that adapt, innovate, and invest in efficient processes that will lead the pack – and with Procurement in Private Equity, that lead might just become insurmountable.

“Investing in efficiency today is investing in success tomorrow.”

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Jun 05

The Power of Automation: Unleashing Efficiency with SAP Ariba Commerce Automation

By Procurement No Comments

Businesses today are realizing the urgent need for procurement and spend management innovation. Key decision-makers, particularly those in finance and procurement, seek solutions to streamline processes, boost efficiency, and improve organizational visibility. This is where SAP Ariba Commerce Automation enters the scene. 

 What is SAP Ariba Commerce Automation? 

SAP Ariba Commerce Automation is a solution designed to supercharge your procurement processes through powerful automation. Its primary goal is to enhance operational efficiency and ensure a steady supply chain by improving spend visibility and fostering efficient collaboration with suppliers. 

It’s a solution recognized for its innovation and effectiveness, with SAP being recognized as a leader in the 2022 Gartner Magic Quadrant for Procure-to-Pay (P2P) suites for the seventh consecutive time. 

Key Features: A Deep Dive 

SAP Ariba Commerce Automation comes with a suite of features designed to optimize procurement operations: 

  • Regulatory and Business Process Compliance: The solution ensures digital matching of invoices to POs and contracts, thus enabling compliance with regulatory requirements through e-invoicing. Transactions are validated based on configured business rules, reducing manual intervention and exceptions. 
  • Automated Procurement Workflows: The solution automates manual processes, freeing up workforce capacity, decreasing operating costs, and increasing productivity. It also enables digital delivery of POs to suppliers across a business network. 
  • Supplier Portal: The portal allows suppliers to flip a received PO on the network into an invoice, eliminating data entry and other errors. It also gives suppliers a view into invoice status updates, reducing inquiries. 
  • Invoice Status Portal and Transaction Visibility: This feature provides visibility into orders and invoices with a holistic view of spend. It allows suppliers to configure notifications to receive emails when their invoice status changes, promoting adoption for long-tail suppliers through self-service updates and invoice visibility. 

Impressive Benefits 

The benefits of SAP Ariba Commerce Automation are as significant as its features. These benefits include: 

  • Improved Procurement Compliance: The solution supports business process compliance with highly configurable business rules on the network. 
  • Automation of Spend Management Processes: The solution enhances productivity, lowers operating costs, and frees up people’s capacity by automating paper-based and manual processes. 
  • Increased Transparency of Business Spending: The solution provides a holistic view of organizational spending with greater visibility into orders and invoices in one platform. 

Recent Innovations and Future Outlook 

SAP is not resting on its laurels. Recent innovations and planned updates include: 

  1. Guided Buying: The next evolution in guided buying is here. The new capabilities improve the buying experience and leverage AI, intelligent recommendations, and machine learning. This creates a holistic view of what the buyer is purchasing and how it aligns with their organization’s environmental, social, and governance (ESG) goals. 
  1. SAP Central Procurement: The latest release of SAP Central Procurement addresses the challenges associated with centralizing procurement. It delivers the benefits of a uniform, centralized procurement system across all direct and indirect categories — without reworking individual solutions spread across the organization. 
  1. SAP Category Management: A new category management solution, SAP Category Management, is set to roll out this year. It will provide actionable market intelligence and category insights, empowering category managers and procurement professionals to make strategic category decisions. 

 

Statistics Highlighting the Importance of Procurement Optimization 

To underscore the significance of these advancements, let’s consider some compelling statistics: 

  1. Companies that excel at procurement have 20% lower costs, less supply chain disruption, and up to 55% fewer supplier defects (Source: The Hackett Group).
  2. High-performing procurement organizations operate at up to 21% lower labor costs (Source: The Hackett Group).
  3. According to Gartner, by 2023, organizations that have adopted AI in their supply chain management strategy will reduce errors by up to 50%. 

 

From the rollout of SAP Category Management to the enhanced supplier management and the integration of AI and machine learning, SAP is poised to redefine procurement and supply chain management. 

As procurement professionals, we must stay abreast of these developments, leverage these innovative solutions, and drive strategic value and business outcomes in our organizations. 

Jun 01

Macro Finance and Procurement

By Procurement No Comments

Macro Financial Concerns and Procurement in 2023: Are You Ready? 

The year 2023 has presented itself as a period of financial restraint, as the International Monetary Fund (IMF) echoed. Global growth is forecasted to fall from 3.4 percent in 2022 to 2.8 percent in 2023, and a more pronounced slowdown in advanced economies demonstrates a tightening macro-financial landscape.  

Furthermore, the financial sector is experiencing turmoil due to high inflation and ongoing geopolitical tensions, increasing market instability. Despite central banks raising interest rates, underlying price pressures are still proving stubborn, suggesting a prolonged period of financial strain.

 

The Impact on Procurement 

These macro-financial changes are placing a new level of pressure on procurement departments. In this context, procurement’s role has evolved significantly.  

The Chartered Institute of Procurement and Supply (CIPS) outlined key procurement trends for 2023, emphasizing the need for sustainability, timely payment to suppliers, investment in technology, and talent management. 

Sustainability has become a primary concern, as customers are increasingly sensitive to ‘greenwashing’ and demand more transparency about the environmental impact of their purchases. This trend pushes organizations to ensure sustainable practices in their supply chains and avoid falling foul of regulations. 

The challenging financial environment has led to 36% of businesses extending payment terms for suppliers in the last 12 months. This contributes to a vicious cycle that impacts cash flow and liquidity, emphasizing the need for improved supplier relationships and strategic payment practices. 

Investment in procurement technology solutions is also growing. Companies are seeking more consumer-like, intuitively designed, and agile solutions to improve efficiencies and work with leaner staff. 

Finally, with the predicted economic environment, there’s a new urgency to fostering a company culture and strategic problem-solving to attract and retain talent​3​ 

 

Navigating Economic Uncertainty with SAP Ariba 

As predicted by the IMF, the global economic outlook for 2023 presents a complex landscape characterized by financial sector turmoil, high inflation, geopolitical uncertainties, and the lingering effects of the COVID-19 pandemic. In such an environment, businesses need robust, flexible, and intelligent tools to navigate the choppy waters of global commerce. 

With its comprehensive suite of solutions, SAP Ariba is perfectly positioned to help businesses adapt and thrive in these uncertain times. Its intelligent sourcing tool, for instance, allows companies to identify savings opportunities and assess market dynamics, giving them a competitive edge even in challenging conditions.  

As inflation remains high, the ability to efficiently source and manage direct and indirect goods or services within a single platform becomes a crucial advantage, allowing businesses to reduce their time, effort, and risk associated with sourcing events. 

 

Aligning with Sustainability Trends 

Sustainability is no longer a niche concern; it’s a core business priority. Businesses are increasingly under pressure to demonstrate that their operations and supply chains are sustainable to meet regulatory requirements and appeal to increasingly eco-conscious consumers. 

SAP Ariba’s Supplier Management tool can be a crucial asset. It provides comprehensive tools to help buyers onboard, qualify, segment, and manage supplier performance according to parameters that matter to them. This means businesses can drive spending towards preferred, sustainable suppliers, reduce overall risk, and ensure compliance across their entire supply base. In doing so, companies can turn sustainability from a challenge into an opportunity, bolstering their reputation and gaining a competitive advantage. 

 

Embracing Technology for Greater Efficiency 

SAP Ariba is at the forefront of the trend toward increased investment in procurement technology. Its suite of solutions embodies a consumer-like, intuitively designed, and agile approach that can significantly improve business efficiencies. For example, the SAP Ariba Supply Chain Collaboration tool automates the direct procurement lifecycle, reducing reliance on emails and spreadsheets, shortening cycle times, and increasing productivity. 

SAP Ariba Buying and Invoicing further streamlines the indirect goods and services procurement process. Automating and regulating the management of the entire procurement process helps business leaders eliminate errors and exceptions, manage more spending with less effort, maximize savings and profit margins, and respond flexibly and swiftly to changing demands. 

 

Winning the Talent War 

In the predicted economic environment, fostering a strong company culture and attracting the right talent will become even more essential. SAP Ariba’s user-friendly, intuitive design is crucial in this regard. It makes procurement tasks more engaging and less cumbersome, improving employee satisfaction and retention. 

Furthermore, the Guided Buying feature of SAP Ariba makes the procurement process more intuitive and compliant, making it easier for employees to adhere to procurement policies and procedures. This enhances the effectiveness of procurement teams, freeing them to focus on strategic problem-solving and relationship management, which are crucial skills in the modern, complex business environment. 

In conclusion, SAP Ariba is a powerful tool that can help businesses navigate the challenging economic conditions predicted for 2023, align their operations with key procurement trends, and drive significant efficiency and cost savings. By leveraging its comprehensive suite of solutions, businesses can position themselves to survive and thrive in the uncertain times ahead. 

 

In a time of financial restraint and uncertainty, organizations must leverage tools and strategies to help them navigate these challenges. Armed with solutions like SAP Ariba, procurement departments can play a pivotal role in driving cost savings and efficiencies. The time for organizations to act is now – to survive in the current financial climate and thrive in the years to come. 

 

May 25

Navigating the Supplier Landscape

By Procurement No Comments

Unleashing the Power of SAP Ariba Solutions for Optimized Procurement and Risk Management

 

Supplier management has become a critical aspect of business operations for procurement and supply chain executives in interdependent businesses and complex supply chains.

In fact, according to a report by Ponemon Institute, 53% of organizations have experienced at least one data breach caused by a third party in the past two years. This statistic alone underscores the urgent need for robust supplier lifecycle and risk management.

Fortunately, innovative solutions are available to help professionals navigate this challenging landscape. For instance, SAP Ariba’s Supplier Lifecycle and Performance solution offers various benefits that help streamline supplier management and optimize procurement processes.

Enhancing Supplier Relationships

A strategic procurement process starts with strong supplier relationships. SAP Ariba solutions provide a unified and comprehensive view of supplier information, which helps businesses work effectively with suppliers and withstand disruptions. This increased visibility can drive spend to preferred suppliers, allowing businesses to manage suppliers based on specific parameters and integrate this information with other SAP Ariba solutions.

Maximizing Savings

SAP Ariba’s solutions can also help eliminate savings leakage. With enhanced visibility and control, businesses can ensure employees buy the right products at the right price, allowing negotiated savings to reach the bottom line.

Simplifying Risk Management

Understanding supplier risk is essential in today’s complex business landscape. 2021 data breaches increased by 17% from the previous year, and it’s predicted that supply chain attacks would quadruple in 2021 over the number of 2020 attacks. SAP Ariba’s Supplier Risk solution simplifies supplier risk management by providing actionable insight into high-risk suppliers and focused risk alerts.

Gaining Deeper Insight

With SAP Ariba Supplier Risk, businesses can act fast with insight into the location of at-risk suppliers, the problems they may face, and the orders and shipments impacted by risk. This solution also allows for intelligent control assessments based on suppliers’ inherent risk, enabling businesses to identify suppliers of greatest concern.

Driving Compliance with Embedded Risk Management

Embedding risk management in the procurement process can significantly improve compliance. SAP Ariba Supplier Risk helps reduce the assessment cycle time from months to weeks, improving compliance through third-party risk assessments for each supplier engagement.

Delivering Business, Environmental, and Social Impact

Businesses today are increasingly held accountable for their operations’ social and environmental impact. With SAP Ariba Supplier Risk, companies can find the causes of risk to enable compliance controls that make a difference and provide responsible plans for supplier selection, onboarding, and contracting.

Proactively Mitigating Risks

SAP Ariba Supplier Risk enables businesses to generate and execute issue management and action plans to mitigate risks proactively. This solution also connects to the source-to-pay process to improve compliance.

Receiving Personalized Risk Alerts

The SAP Ariba Supplier Risk solution automatically tracks more than 200 risk incidents, helping businesses proactively monitor financial, operational, environmental, social, regulatory, and legal risks.

In an era where 65% of businesses find it hard to manage cybersecurity risks associated with third parties and 74% believe that third-party vendor selection overlooks potential key risks, SAP Ariba Supplier Risk removes the challenge from supplier risk management. It empowers businesses to work with suppliers that can keep business moving with less risk, monitoring aspects of supplier lifecycle management that may not have been considered before.

The Future of Supplier Management

As businesses continue to evolve, so does the complexity of their supplier networks. An estimated 60% of organizations work with over 1,000 third parties, which is growing as business systems become more complex. Additionally, 71% of businesses expect to become more reliant on third parties in the next two years.

Given these trends, it’s clear that effective supplier lifecycle and risk management are more critical than ever. Advanced solutions like SAP Ariba’s Supplier Lifecycle and Performance and Supplier Risk solutions can help businesses navigate this increasingly complex landscape, enabling them to make better buying decisions, maximize savings, scale compliance, simplify risk management, and more.

With robust supplier management solutions, businesses can turn procurement and supplier management from a challenging task into a strategic advantage. By harnessing the power of SAP Ariba solutions, businesses can mitigate risks and unlock opportunities for growth and innovation. It’s time to reshape the procurement landscape and transform how we manage supplier relationships.

 

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Mar 27

Best Practices to Master Buying and Invoicing

By Procurement No Comments

CFOs and CPOs face numerous challenges when managing to buy and invoicing processes within their organizations. Efficient financial management is crucial to maintain a healthy cash flow, reducing risk, and making data-driven decisions. In this blog post, we’ll explore the top ten pain points related to buying and invoicing from a financial perspective, along with best-in-class solutions and supporting statistics.

 

Manual Invoice Processing

One of the most time-consuming and error-prone aspects of financial management is manual invoice processing. Automating this process with AI-based tools can significantly reduce the time spent on processing invoices and improve accuracy. According to the Institute of Finance and Management (IOFM), organizations that have automated invoice processing report a 60-80% reduction in invoice processing time.

 

Inaccurate Financial Data and Reporting

Access to accurate, real-time financial data is essential for making informed decisions. Implementing real-time data analytics and reporting tools can help CFOs and CPOs to achieve greater insights and improve decision-making. Companies that use real-time analytics experience a 54% improvement in decision-making speed, according to the Aberdeen Group.

 

Fraud and Compliance Risks

Fraud and compliance risks can have severe financial and reputational consequences for organizations. Enhancing internal controls with fraud detection and compliance management systems can help mitigate these risks. The Association of Certified Fraud Examiners (ACFE) reports that companies with strong anti-fraud controls can reduce fraud losses by up to 50%.

 

Decentralized Procurement and Purchasing Processes

A decentralized procurement process can lead to inefficiencies, lack of visibility, and increased costs. Centralizing procurement with a comprehensive, cloud-based procurement platform can streamline operations and reduce expenses. The Hackett Group found that centralized procurement can reduce procurement costs by up to 20%.

 

Inefficient Vendor Management

Managing vendors effectively is crucial for maintaining strong relationships and ensuring optimal performance. Implementing a vendor management system with automated vendor onboarding and performance tracking can improve the efficiency of this process. Deloitte reports that companies with efficient vendor management experience 26% faster vendor onboarding times.

 

Lack of Spend Visibility

Gaining granular, real-time insights into spending is essential for cost control and strategic decision-making. Utilizing spend analytics tools can provide CFOs and CPOs with the visibility they need to make informed decisions. Gartner states that organizations that leverage spending analytics can achieve up to 15% cost savings.

 

High Invoice Error Rates

Invoice errors can lead to payment delays, strained relationships with suppliers, and increased costs. Adopting a smart invoicing system with built-in error detection and prevention can reduce invoice error rates significantly. Ardent Partners found that companies using smart invoicing systems can reduce invoice error rates by up to 37%.

 

Slow Approval Workflows

Lengthy approval workflows can delay payments and hinder cash flow management. Streamlining approval workflows with automated routing and escalation features can expedite the process. PayStream Advisors report that organizations that automate their approval workflows experience a 45% reduction in approval cycle times.

 

Difficulty Managing Cash Flow and Working Capital

Effective cash flow management and forecasting are vital for maintaining financial stability. Implementing cash flow management and forecasting tools with real-time visibility can improve accuracy and decision-making. PwC found that companies that use cash flow management tools can improve cash flow forecasting accuracy by up to 36%.

 

Ineffective Budgeting and Cost Control

Budgeting and cost control are integral to financial success. Adopting an integrated budget management system with real-time tracking and reporting can streamline these processes and provide better insights. The Financial Executives Research Foundation (FERF) reports that organizations that implement integrated budget management systems experience a 33% reduction in budgeting cycle times.

 

By addressing these pain points with best-in-class solutions, CFOs and CPOs can significantly improve their organizations’ financial performance, reduce risk, and enhance decision-making capabilities. These improvements will ultimately lead to a more efficient and effective buying and invoicing process, allowing organizations to thrive in a competitive business environment.

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Feb 16
Supply Chain Management SAP Ariba Premikati

Tips for Successful Supply Chain Management

By Procurement No Comments

Sourcing and supply chain management go hand in hand.

Successful supply chain management is the backbone behind most successful businesses. If we had any doubt, the last three years made it clear.

Here are four pointers to help you ensure the success of your supply chain and how you can manage your relationships for success:

1. Leverage New Technologies

Today’s supply chain industry is brimming with new technologies and it has never been easier to get the most out of your supply chain using tools such as:

I. Artificial intelligence and predictive analytics to aid in inventory forecasting.

II. Procurement applications such as SAP Ariba SLP.  This aids in quality control, supplier scorecards, supplier management and cost savings during procurement.

III. Digital supply chain twins, which improve transparency and decision-making in the supply chain.

2. Constant Evaluation of Sourcing Strategies and Suppliers

The focal point of any supply chain management is sourcing. If done incorrectly, it could spell the end of many supply chains.

Take, for example, this Gartner study.

74% of companies that constantly reviewed and developed their sourcing strategies increased their productivity and savings significantly.

It really is a no-brainer.

To get the most out of your sourcing, figure out which strategies work best for your supply chain and focus on them. You should concentrate on the suppliers’ credibility, capacity, and shared goals.

3. Employee Development

Employees, like other aspects of the business, make significant contributions to supply chain management. In a nutshell, they are the foundation of any organization.

It only makes sense to invest in their advancement. Especially if you want your supply chain management to succeed.

When it comes to training their employees, most businesses are afraid. They are concerned that they will leave and join their competitors. It’s understandable.

But wouldn’t it be more dangerous not to train them? And then watch them wreak havoc on the supply chain and overall business objectives?

Employee competencies are improved through training and development.

4. Enjoy the Competition

Competition is the backbone of any thriving industry. To see success in your supply chain, you must learn to enjoy the competition. 

 Why? The simple answer is competition breeds innovation. And innovation is the secret weapon of any successful business. 

 With competition, you can isolate a competitive edge, allowing you to better cater to your customer’s needs.  

 It also has benefits like improved customer service and constant business development.  

 

What are the key issues you encounter in your supply chain organization?

 

For procurement and supply chain management consultations from the global leaders in Ariba solutions please visit us at www.premikati.com.

Dec 31
cut procurement costs Premikati marketplace

Cut Procurement Costs – Not Quality

By Procurement No Comments

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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