Are you over-paying your everyday suppliers?

With every business, there are standard operational costs required to keep the business churning. Overheads such as office supplies, IT equipment, print, utilities, telecoms and workwear can quickly become a drain on business revenues if not kept on top of.

For most SME’s, these overheads consist of primarily low-volume and often one-off or infrequent orders that go out to a wide range of suppliers and the management of these core categories can be fragmented across multiple departments, making it difficult to identity and capture savings opportunities. More so, even if operational costs are controlled and time and resources have been allocated to manage it, due to low volumes and lack of purchasing power, SME’s will typically end up paying a higher price for the same products and services.

With little to no purchasing power to secure the best deals, lack of time and the majority of procurement and finance resources spent on controlling direct costs, how can businesses lower their overhead ratios to secure competitive advantage?

Get a free indirect spend-health check from ProSource

A spend-health check is an assessment of your business operational costs, conducted to identify saving and operational opportunities across your business – with little to no input from you. It is managed entirely by group purchasing organisation – ProSource, who can not only show you saving opportunities, but manage the entire transitioning process to secure them and sustain them.

Step 1: Spend data collection and cleansing

Provide a soft data file containing 12 months of spend data including order details and quantities and current supplier contracts or access to 12 months of invoices. We will then compile, cleanse and categories your spend to enable us to analyse and identify opportunities.

Step 2: Spend review and analysis

We will review and analyse your spend and compare your pricing against pre-negotiated rates from trusted suppliers on our framework and further leverage cost savings with the best-fit supplier.

Step 3: Playback

After reviewing your spend in each category, we will be able to present you with an accurate, category by category review of available saving opportunities.

Step 4: Transition and implementation

If you are happy to proceed and secure the savings presented, you can choose to become a ProSource member. Once a member, we will share the in-depth spend analysis, introduce you to your new suppliers and facilitate and manage your transition and implementation.

Step 5: Monitor

Probably the most valuable part of the entire process, continued monitoring of your spend and suppliers. ProSource will essentially become an extension of your purchasing department, essentially acting as an extra pair of eyes, ProSource will review your spend with suppliers quarterly, and are able to look into and help resolve any anomalies i.e. spikes in spend/product replacements etc. and will hold record of all contractual renewal dates to consistently ensure you are getting the best deal available and your savings are maintained.

How does ProSource work?

You’ve heard the term, ‘there’s power in numbers’ and that is exactly how a Group Purchasing Organisation, like ProSource, works. ProSource aggregates the spend of all its member companies and leverages buying power of larger entities for spend categories where you have smaller volumes or little negotiating power. This method then motivates suppliers to provide the members with ‘bulk pricing’. As ProSource increases its members, the more competitive the prices will become, therefore continually providing great savings that a lone SME may not be able to achieve.

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