Knowledge Based Thinking

PUBLISHED January 2017

Nothing to Lose! But Profit to Gain!

There is an unspoken mantra in the business world, that you do not engage the competition in your business dealings, and many would argue rightly so!

In a combative world where it is a struggle to make a profit, why risk exposing your business blue print? This is where a highly successful opportunity to increase your organization's profitability is overlooked. What if your buying volume, could be tripled by simply engaging a process that would provide greater negotiation leverage? Better yet, you would not have to drive the process and the only fee involved was based solely on you securing a reasonable profit. No Profit No Pay Policy!!!! Too good to be true! Not for those who think outside the box and align themselves with a procurement specialists.

A procurement specialist engages this process on a regular basis ensuring supply integrity, quality, deliverability and profitability. By simply volumizing annual turnovers with other similar organizations and negotiating individual “Supply Agreements” with manufacturers and suppliers, a procurement specialist is able to achieve what many organizations cannot? Increased profits! All you need to do is engage a procurement specialists and at the end of it all - a simple no discount no pay policy!

Nothing to Lose! But Profit to Gain!

What would a 10-15% profit increase add to your organization?

If you have an annual cost of between 300,000 to 3,000,000 with a supplier or commodity then why not contact Aran Barrie, Principal at Business Procurement Specialists for a free consultation and see how this strategy can work for your organization. Nothing to lose but a lot to gain!

PUBLISHED November 2016

Supplier Complacency! or Supplier Integrity?

The Clinical Facts!

Symptoms of supplier complacency:

  1. You are attached to your supplier because of your relationship to the representatives?
  2. You are attached to you supplier because of the time you have been with them?
  3. You are attached to your supplier because you are comfortable with the status quo?
  4. You are attached to your supplier because you have not keep up with innovation?
  5. You are so busy at what you do well that you have not assessed how well you do things?
  6. You are attached to your supplier because you have not had the time to investigate the competition?

Do any of the above points reflect the supplier relationship within your organization?

How bad is it really?

If one person told you something to improve in your organization, you would listen.

If two people told you the same thing was wrong within your organization, you would investigate.

If three people told you the same thing was wrong in your organization, you would have alarm bells ringing!

How many questions from above are telling you something about your supply chain?

Supplier Integrity is based on a few simple facts.

Fact 1. Regular robust supplier audit and reviews dealing with the clinical facts ensures Supplier Integrity.

Fact 2. Involvement of supply chain and negotiation specialists ensures Supply Integrity.

Fact 3. A process of identified targets and objectives ensures product delivery, measurement and performance, all contributing to Supply Integrity.

Or the simple formuler:

Audit+Specialists+Outcomes = $UPPLIER INTEGRITY & PROFIT$

If a 10-15% profit can be achieved what will that mean for your organization's success!

Please feel free to download a simple Supplier Audit Review Matrix that deals with the clinical facts. If you would like to investigate your organization's Supplier Integrity with no upfront cost, then why not engage Aran Barrie, the Principal Consultant from Business Procurement Specialists.

It is a simple no discount no pay policy!

Business Procurement Specialists

PUBLISHED September 2016

The China Syndrome!

Image result for china

While the China Syndrome was a 1979 movie on a nuclear meltdown the events of this week similarly highlight how easily things can go so wrong. Recently discovered asbestos has raised major concerns for some 69 projects throughout Australia. While seemingly checks were performed throughout the manufacturing and delivery processes, somehow asbestos has found its way into some of the building products.

This unfortunate outcome has caused some companies to reconsider sourcing products from China at a time when China’s products have never been more in demand. China has made considerable progress with the quality of their products and a seemingly transparent approach to it’s manufacturing processes. More and more companies want to deal with China but are unsure as to how to approach the matter. Here are a few processes to consider:

Supplying to Recognized Markets.

If the manufacturer is already supplying to a recognized market it means someone else has already done the hard yards for you. But that does not mean that you do not need to follow through on your due diligence. If you have not worked in this avenue before, reach out to those who understand the processes and required outcomes.

Chinese Legal Representation

Any supply contract needs to be negotiated and formalized with Chinese legal representation. This is a simple but often overlooked process that minimizes risk and maximizes supply-chain integrity.

ISO 9001 Certified

A ISO 9001 certified manufacturer provides a certain amount of peace of mind, in that the organization understands the quality components required and the stipulated quality output. This is one of the most important factors with sourcing products from any manufacturer but certainly not the only safety net for risk management.

Independent Inspectors

Independent inspectors ensure integrity and clarity in achieving quality outcomes. This without a doubt is the biggest hurdle to the industry. How do you identify a quality inspector that will work for your interests? Our recommendation is to connect with an organization that has those contacts and understands the processes. Ideally you will need someone who is bi-lingual and understands both the Chinese and Australian industries. Independent inspectors are out there and can be easily identified, becoming an integral part of your quality assured processes.

It is unfortunate that events such as last week’s asbestos issues, continue to create an air of uncertainty in the market, but companies need not write off China completely. A robust and risked managed process can still ensure that sourcing products from China is both profitable and safe. For more information on any of the identified processes please feel free to contact us.

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Aran Barrie is the Principal Consultant at Business Procurement Specialists with extensive experience in supply chain management, contract negotiation and procurement training.


Unearth Hidden Profits!

Your average small to medium business person believes the concept of profitability is measured by increased sales and increased revenue. Businesses therefore are so focused on excelling at what they do that they often overlook the importance of unearthing profits by process efficiency, procurement methodology and personnel training. The International Association for Contract and Commercial Management (IACCM) after conducting a survey across a number of countries in our region, including Australia noted that on average a 9.15% profit could be made by improved negotiations and contracting.

For any small to medium business, procurement or supply chain solutions, as it is often referred to, is an excellent area to direct attention with the view to improve and increase profits. Specialist procurement professionals very quickly can assess a business and generally offer 3 areas for improvement.

  1. Process Efficiency

Most businesses evolve according to their outputs with no real consideration given to a streamlined business model. A quick analysis of your business can quickly determine processes for improvement.

  1. Procurement/Supply Chain

Procurement and supply chain identification allows specialists to network with proven and established suppliers and service providers. The ability to volumize your business procurement with similar organizations through a procurement specialist means that Supply Agreements are extremely sharp and robust.

  1. Procurement Methodology Training

Procurement training ensures that the personnel responsible for transactions are at the very top of their skill-set. Methodology training teaches a holistic approach to procurement, ensuring that a business has a robust procurement strategy.

The IACCM survey identified that businesses who look internally can increase their profits on average by 9%. A simple health check from a procurement specialist might just be what your business needs to unearth hidden profits.

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Aran Barrie is the Principal Consultant at Business Procurement Specialists with extensive experience in supply chain management, contract negotiation and procurement training.

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