We firmly believe that all publicly traded companies should have a well-defined sourcing and procurement policy/process with a structured approach to purchasing goods and services. This is necessary as it impacts the profit and loss (P&L) statement and serves as a fiduciary duty to clients and shareholders.
Consider this: Would you invest in a business that lacks a mature global supply chain, sourcing, and procurement policy/process?
Ensuring cash flow and cost stability should be the top priority for every company. However, we have seen companies struggle with rising interest rates, persistent inflation, and debt accumulation, leading to adverse effects on their financials. Just look at examples like WeWork, Rite Aid, Bed Bath & Beyond, Party City, and Express to name a few...
Could implementing a mature sourcing and procurement policy/process have helped these companies deliver cost stability by countering inflation through supplier diversification?
By implementing a sourcing and procurement policy/process, we reinforce risk mitigation and deliver monetary value. This is an area we are particularly passionate about, which is why we offer Business Process Outsourcing (BPO) services at Veteran1. Our goal is to assist clients in mitigating risk and reducing costs associated with procuring goods and services from global suppliers.
Would you consider investing in a company or business opportunity if its expenses were out of control? Should companies apply more procurement rigor in their buying activities?
Should every dollar of spend go through a formal Request for Proposal (RFP)/Request for Quotation (RFQ) process, especially if it is a publicly traded company?
Absolutely! Mitigate risks with effective procurement. We modernize our procurement processes by leveraging advanced tools and technology. Emailing RFPs/RFQs is worst practice. We drive transparency, auditability, traceability, and procurement rigor through competitive environments accessible throughout the Source-to-Contract (S2C) evolution. Our streamlined approach eliminates manual inefficiencies, saving time and resources for both our company and suppliers. This allows for better decision-making by you, improved collaboration, and a comprehensive audit trail, ensuring compliance and risk management for your teams.
If your team is at a point where a policy refresh is necessary or requires back-office outsourcing services, please let us know. We are here to assist you in optimizing your procurement processes and ensuring cost stability.
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