The Adventures of eProcurement: 10 Clues Your Business Knows How to Save
“I have the advantage of knowing your habits, my dear Watson,” said he. “When your round is a short one you walk, and when it is a long one you use a hansom. As I perceive that your boots, although used, are by no means dirty, I cannot doubt that you are at present busy enough to justify the hansom.”
“Excellent!” I cried.
“Elementary,” said he.
While Sherlock Holmes author Sir Arthur Conan Doyle couldn’t have predicted the obstacles most executives would face while working to optimize their companies some hundred years later, Sherlock’s jest still rings true. Like Sherlock, procurement professionals are fueled by analysis and reason. Harnessing the power of data analytics, including insight on purchase history, commodity trends and supply chain patterns, they are able to draw conclusions that help to strategically manage spend and identify opportunities for cost savings.
So, how can you tell if their efforts are working? You don’t have to be a detective to figure this out—here are 10 dead giveaways that your company knows how to save:
- Happy Employees: One of the easiest ways to spot a thriving company is to count the smiles. Budget stress effects an entire organization, from the executive team down, and when a company is run as efficiently as possible, employees are motivated to continue driving great results.
- Growing Staff: If you’re starting to notice a lot of new faces within your organization, take it as a sign that your company is on the right track. New employees can help usher in the next phase of growth.
- New Office Perks: With more resources available, companies that are saving money by strategically managing spend are able to reinvest in itself by implementing new programs that reward its hard working team. Here at JAGGAER, our employees are treated to free Durham Bulls and Carolina Hurricanes tickets.
- Trimmed Supply Stock: Less paperclips lying around? Don’t worry—there’s not a thief on the loose. It’s just a sign that your company has determined that the cost of materials inventory negatively impacted indirect spend.
- Confident Decisions: When business leaders know that their company is being run efficiently, they are more likely to make clear and confident decisions moving forward.
- Competitive Negotiations: Companies that know how to save have mastered the art of negotiating contracts to ensure they’re getting the best deals possible.
- Focus on the Future: Companies that are saving money have an opportunity to shift some of its attention to the future, taking the necessary steps toward developing or implementing new products or services.
- Customer Praise: When spend is well allocated, companies have more time to spend building relationships with their customers and working to meet unique needs. Customers take notice of this attention and are happy to sing your organization’s praises to press, on social media or as a reference to some of your potential new customers.
- Close Supplier Relations: Similar to above, organizations have a greater opportunity to get to know their suppliers, which could lead to new sourcing opportunities down the line.
- Satisfied Stakeholders: Lastly, those who invest in your company will be pleased to see that your organization has explored cost impacts and made changes to streamline overall.
What else can you uncover about how your company is saving? Join the conversation on Twitter at @JAGGAER.