The next phase of margin improvement for technology businesses will be delivered through procurement excellence.
Rapid top-line growth for technology companies has rightly been the prime focus; grabbing market share and establishing product dominance. However, as growth naturally slows, focus must turn to margin, and the management of costs as well as revenue.
Despite very sophisticated approaches to development, sales and service, many technology organisations fail to harness the power of Procurement Excellence to improve profitability. We see a number of key areas for consideration;
- Procurement in tech companies is often a back-office transactional function, without any proactive savings delivery focus. The impact of Procurement Excellence can be significant
- Technology companies often buy a lot of technology – all priced in US$ - and for UK based companies, a margin impact is inevitable from the declining strength of sterling
- Technology companies spend significant sums on categories such as marketing where the involvement of procurement can generate significantly more marketing impact for your budget
- Categories of core corporate expenditure such as Utilities, Facilities Management, Cleaning, Catering, Office Supplies and Telecoms will yield savings and, hence, margin improvement when sourced professionally
- Procurement Excellence delivers not just margin improvement but access to supplier-led innovation leading to improved customer service and employee satisfaction
The technology businesses we work with are already seeing how improvements in procurement can deliver substantial, sustainable cost savings, while also improving the quality of purchased goods and services.
Case studies and recent developments:
Why choose Procura?
- We are specialists in procurement. We bring Procurement Excellence, deliver cost reduction and improve our client’s profitability
- Our consultants work closely with all kinds of organisations to improve their profitability by identifying, delivering and maintaining savings from all categories of external spend
- A relentless focus on bottom-line results combined with our deep supply-market knowledge ensures that spend is optimised – and stays optimised
- We offer a range of entrepreneurial risk-sharing fee models to partner with our clients