Profits through more efficient procurement

big profit

When it is a question of increasing the efficiency of a company’s operations, thoughts often turn to how to produce more goods for the increasingly competitive market with fewer resources. Various productivity and efficiency enhancement programmes have all but become synonymous with lay-off programmes. Often companies could achieve substantial savings in their operating costs by centralising and harmonising their operating models. The procurement operations of a company are a great example.

In the industrial sector in particular, procurement costs often amount to between 60 and 70 % of companies’ total costs, consisting of both production-related and other costs, materials, services and immaterial products. Many companies could improve their competitiveness on the market in a relatively short time by enhancing the efficiency of their procurement, but many have not seized this opportunity.

Improving the efficiency of procurement is one of the fastest ways to increase business profits. Research has shown that improved procurement and a centrally managed operating model create better results than a decentralized model.


Not only processes, but process competence

Procurement has changed in time with the companies’ changing operating environment. The biggest successes on the global market no longer come to the procurement director who is the best haggler. Instead, the profile of a procurement professional resembles that of business leaders. The management of procurement begins with the creation of an overall picture, mapping the facts and creating a strategy. Simply enhancing the effectiveness of procurement by centralising operations is not enough to improve the company’s results. Procurement competence is also in need of improvement. A good procurement professional not only knows his or her trade, but these days also has business competence, management and change management skills and is socially talented. The importance of social and management skills is directly reflected in the company’s competitiveness. The management of the supplier interface and network is increasingly considered to be part of a company’s competitiveness and overall ability to function.


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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