BLOG

Suggested European Procurement Best Practices for Businesses by SpendEdge

Oct 30, 2019

The majority of government and private entities now consider procurement as a fundamental enabler of business strategy. It has become a preferred method for achieving sustainable cost reduction and a source of opportunity for process simplification. Based on our experience in working with clients to improve their procurement outcomes, we have outlined key strategies that are imperative for your procurement function right now. These strategies when implemented properly, will significantly lower costs, improve process efficiency, deliver competitive advantage by eliminating wastage in the cycle of source and supply when purchasing goods and services.

Want to know how you can lower the cost of processes by implementing European procurement best practices? Request a free proposal and we will get back to you in 48 hours with our customized solutions. 

Request Free Proposal

European procurement best practices #1: Centralize the procurement function

The decision to centralize the procurement function may not be an easy transition, but it can be vital for your organization to ensure the implementation of effective purchasing practices. Companies opting for centralized procurement operation gain better control of purchasing functions and promote a more effective buying process. They spend less time on ad hoc purchasing and enjoy more discounts from vendors due to greater volume purchasing. A centralized location for all purchasing records also improves visibility into purchasing decisions, facilitates better inventory management, and prevents disruptions, which reflects on the company’s performance.

European procurement best practices #2: Share compliance data 

This is one of the European procurement best practices that companies can implement. Sharing the compliance data with relevant business leaders not only allows companies to improve transparency but it can improve performance as well. Systematic and public reporting of compliance data takes advantage of image-building and competition amongst managers and departments. It drives proactive decision-making and opens up new avenues for collaboration.

European procurement best practices #3: Realize hard savings 

Procurement cost savings is the main KPI for most procurement departments. Organizations use numerous ways to track these savings. However, focusing solely on procurement cost savings is not a good strategy in the long-term. The changing market dynamics have compelled CPOs to now realize savings based on transaction values and actual consumption. They are looking at achieving hard savings based on reduction in the unit cost of operations and production.

Are you finding it difficult to realize hard savings based on transaction values and actual consumption? Request free access to our platform and know European procurement best practices benchmarks to improve process efficiencies.

European procurement best practices #4: Invest in technology 

Most of the CPOs have had mixed views regarding procurement technology infrastructures. But they have realized that old-age solutions are not the best of the breed. They need to automate supply processes and bring significant bottom-line benefits by allowing greater productivity to increase efficiencies in business transactions. Use of technology is one of the European procurement best practices used by benchmarking firms to measure the efficiency of procurement organizations.

Recent Blogs

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars