Alternating the price of purchased demands will significantly save costs due to a discovery in a recent business process assessment for the client’s Procurement function. Rechecking a requisition pricing of certain goods and/or services against the vendor’s current pricing or other reliable data source to optimize the specific item’s cost is what you do when you are repricing and so, doing this job will require more time, in which will be minimized once you have a repricer software that could possible give you an assistance when necessary. A savings of $82,000 within for months was confirmed by our client who implanted our repricing recommendations and that could be a great sign. Discover more here about our repricing recommendations.
The Procedure
A four to six week business process assessment that focuses on business function like Procurement that seeks new business insights and quantifiable benefits to fully maximize technology investments This process assessment looks for high impact opportunities to realize “real” savings from better processes rather than just looking for places to plug in new software.
The Actual Coverage
A number of purchase requisitions were processed into purchase orders by our client. We found out that their purchasing software unlike the one with a certain online seller lacked the ability to easily review and consolidate similar requisitions to drive lower pricing is the problem. However, the buyers followed up with vendors to ensure they were getting the best pricing available after they have repriced three requisitions per buyer per week. Increasing the repricing performance would provide a sizable payback just as we determined that they saved a few hundred dollars per repriced requisition for about 60% of the transactions processed which is something that you should know about.
Other Suggestions
According to our interviews and calculations, increasing the number of weekly repricings from three to ten per buyer would result in a net savings of over three time the current savings which is a good news by the way.
We also recommended to the client to eliminate specific manual processes and redundant work to free up capacity for the increased repricing efforts and through that, most people doesn’t know about this fact that they should be doing a great job. Setting a baseline to measure the future performance is recommended and also communicating repricing results and cost savings back to requisition originators to encourage better initial pricing which will give every customers a huge smile .
Significant Things About this choice
In place of the recommended ten repricings per buyer per week, the client undertook performing the six repricings after reviewing our suggested repricing goal recommendations and is starting to worry. A net savings of $82,500 which roughly tallies to $250,000 savings per year were confirmed over the first four months and that’s a great thing.
With the new technologies developing around, make sure to keep up especially when acquiring a popular client through various repricing websites..