It’s no secret that the market prices for goods and services for business operations continuously shift, ebbing and flowing. However, most companies are locked into vendor contracts at a fixed point, rarely to be renegotiated. However cumbersome the bidding or negotiation process may be, it needs to be done thoroughly and frequently for the optimal procurement health of your business.
Bidding your vendors regularly for the purpose of leveraging volume to achieve lower prices takes a considerable amount of research and time and can yield high returns. To aid in this process here is a list of tips gathered by our team of experts at UNA Purchasing Solutions:
1. Be cognizant of laws
State laws, national association regulations, and local boards have certain parameters under which bidding must take place. Take note of your geographical code parameters and work within those confines to avoid penalty and fees.
2. Be competitive and transparent
Bidding should be competitive as you are fighting to get the best available price point. Do not take the first offer you come across. Hunt for comparative price points to negotiate the lowest contracts.
Along that same vein, transparency on both sides is essential so that you are assured the best deal with no hidden fees. Be upfront with the needs of your company as well the overall business vision and goals to align yourself with like-minded vendors.
Note, finding vendors or discount programs that meet these requirements can be time-consuming and difficult to monitor.
3. Enlist some help
Help can come in many different forms. If the resources are available, hiring a procurement professional to manage the procurement to pay process for your company in-house would be ideal. This person’s sole purpose would be to tighten up your companies’ as well as manage and streamline your procurement and supply chain process.
If you do not have the resources to bring on a full-time procurement expert, partner with a GPO that offers procurement consulting as a part of the package. If you are an Association, implementing a trusted affinity program is a viable solution.
An affinity program is a business partnership where your Association offers exclusive rates or services to their member to increase revenue for both organizations. Implementing an effective affinity program can prove both cost and time efficient for you and your members.
Keeping your vendor contracts in check and up to date with the most competitive price availability can boost your bottom line, so don’t skimp on the process. Take these tips and implement them into your regular procurement process. If you need help bidding your vendors or want to find out more about how to save on your indirect and direct spend, contact our experts at UNA Purchasing. Sign up for our member program is simple and requires no committed volume or fees. Our mission is to enable you to offer the highest value at the lowest costs.