5 ways ProSource can help SME’s recover
Covid-19 has severely disrupted businesses on a global scale and the restart and recovery phase will not be easy. You are taking all the big steps to mitigate the impact but who is securing the smaller and sustainable quick wins? Here are 5 ways group purchasing organisation - ProSource, can support your organisation rebound (with little input from you).
What is ProSource? You’ve heard the term, ‘there’s power in numbers’ and that is exactly how ProSource works. All organisations have every day, indirect costs they must cover simply to keep the business running. These essential purchase categories include everything from IT equipment and office supplies, to utilities and telecoms – typically low-priority areas of spend where SME’s have little negotiating resource available to secure the best deals. ProSource is a member only Group Purchasing Organisation that aggregates the spend of all its member companies to secure market leading pricing from trusted suppliers.
1. Secure Cost Savings
Covid-19 has required procurement professionals to react to radical impacts to their businesses, their markets and their suppliers and their initial efforts and priority will be concentrated on the top direct spend and their tier 1 and tier 2 suppliers. This will no doubt leave the ‘tail’ – typically smaller ‘indirect spend’ suppliers – as a problem that never gets addressed. This is where ProSource can support.
The most obvious reason ProSource can help is by reducing essential indirect costs and quickly having a direct impact on your bottom-line. ProSource will analyse your core category spend, compare against pre-negotiated rates with carefully selected, best value suppliers and present, on average, a 15-20% reduction on your business overhead costs. ProSource will also manage the full transition, granting you access to immediate savings and absorbing all the work.
2. Strengthen Supply Chain
Covid-19 has seen many suppliers altering services, reducing product offerings and worse, going into administration. This has put pressure on procurement professionals to identify alternative sources of supply and sometimes with little notice. Another benefit of becoming a ProSource member is the abundance of trusted suppliers on the framework for each core category. ProSource is in constant contact with their framework suppliers, their business activity and standing in the market and if any challenges do arise, they are able to transfer you to another supplier with little hassle, therefore helping to mitigate supply uncertainty, build a future-proof resilience and limit any disruption to your workforce.
3. Free up Resources
Becoming a member of ProSource is not just a ‘quick fix’, it effectively acts as an extension of your purchasing department, improving operational efficiencies by removing the need for internal procurement administration and supplier contract management. This will give your workforce time to focus on the bigger categories and in turn work towards the bigger picture.
4. Save Time
ProSource saves you time by taking over the fundamental steps required to find, evaluate, and transition to a new supplier. It is no secret that supplier research, RFP’s, tenders, supplier evaluations etc. are seriously time consuming, for most core categories the norm is to find a well-known supplier, stick to them and just accept any annual percentage increases. ProSource removes this entire process and is continually sourcing and vetting new suppliers and will manage the entire transition.
5. Monitoring Suppliers and Spend
ProSource also acts as an extra pair of eyes and is continually monitoring supplier pricing to provide best value long-term. ProSource will review your spend with it’s suppliers quarterly, and are able to look into and help resolve any anomalies i.e. spikes in spend and will hold record of all contractual renewal dates to consistently ensure you are getting the best deal available.
With the economic downturn we’re facing, it’s vital that we are hyper-focused on profitability, strengthening supply chains and building a more resilient future. If you would like more information on how ProSource can help, enquire below or request a free business health check-up.
Procura provide expert services to clients which can assist as the economic situation recovers and businesses re-set for profitability. We would be very happy to talk through your current challenges and objectives and share our experience.
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