Procurement teams and engineers face several challenges regarding the maintenance, repair and operation of their organisation’s assets and facilities. The supply chain for indirect materials is complex due to the number of stakeholders involved, a fragmented supply base and the number of products that are split across categories. In addition, there is constant pressure from senior management to reduce costs.
As one of the largest industrial suppliers, RS is in a unique position to understand the complex needs of its customers, and to help these businesses streamline their processes and make cost- efficiencies.
The crucial fact for organisations to appreciate is that indirect procurement process costs can be twice as much as the amount spent on the products themselves. So, if your organisation spends £100,000 on purchasing products over the course of a year, you will spend a further £200,000 on processing or ‘soft’ costs.
As such, there is significant value in reducing process costs rather than focusing solely on purchase price. Streamlining processes can bring other major advantages too.