Anthony Ott from Thomasnet Blog writes about the procurement strategies that can help small- and mid-sized businesses at any stage.
Small business owners wear many hats, and a multitude of demands – staffing, financing, inventory management, marketing, and customer service – quickly consume their time, focus and daily operations. As a result, procurement tends to be an afterthought, when it should be approached strategically.
Small businesses spend between 45 and 65 percent of sales revenue on procurement of inputs. Therefore, procurement should be considered a viable opportunity to reduce costs and improve efficiency. Even basic changes to the procurement process can cut procurement costs by 5 -15 percent and start a smaller business on the road to strategic sourcing. Read More