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How Procurement Training Boost Performance
How Procurement Training Can Boost Your Performance
Procurement is one of the key departments in a business entity. For most small businesses and startups, the owner wears many hats and in most cases acts as the procurement manager. On the other hand, large enterprises usually hire procurement managers. Still, irrespective of the size of a business entity, the personnel in the procurement department need to undergo proper procurement training. Here are some of the ways in which such training can improve your business's fortunes:
Improve Relationships With Suppliers
A majority of businesses must deal with suppliers at some point. If a business does not have a good working relationship with its key suppliers, this could have a negative impact on its revenues and profits. Luckily, procurement training equips procurement professionals with the skills they require to negotiate with suppliers in an amicable manner. This is particularly important because, to a business, a supplier is more than someone who sells goods. According to a report published in the Entrepreneur magazine, reliable and good suppliers make deliveries on time, source and deliver quality products, and can give business owners an overview of the industry pricing trends. If your business does not have a good relationship with its suppliers, it will not enjoy these benefits.
Reduce Operational Costs
A good procurement course will teach you how to cut costs associated with the procurement process. Some of the ways you could cut your procurement costs include buying goods in bulk, looking for suppliers who offer discounts and rebates, carrying outbreak even analysis of goods available in the market, conducting best buy analysis, and renegotiating delivery costs. At the end of the day, a business owner could make substantial savings by nicking a dollar here and there.
Cost is one of the main factors that consumers use to make a purchase decision. Therefore, if your business can offer goods and services at a relatively lower price than your competitors, your business is likely to remain popular with most consumers. By signing up for the best practice procurement course, you will learn how to give your company a competitive edge. For example, a report published by the Chartered Institute of Purchasing and Supply states that a company could increase its competitiveness by simply implementing green/sustainable procurement practices.
In simple words, sustainable procurement involves the introduction of economic, environmental, and other criteria into contractual documents for purposes of motivating suppliers to offer green products and services. This makes business sense because some consumers in developed countries are willing to pay more to access green goods. A study carried out by Harris Interactive found that 78 percent of consumers in the United States say they regularly buy green services and products.Out of these, 43 percent are willing to pay more to get goods that meet their ethical manufacturing standards.
All said, procurement training is vital for any business entity. Such training will equip your procurement personnel with the skills required to remain relevant in a competitive business environment, reduce the cost of procuring goods and services, as well as improve relations with your suppliers. These aspects can make a huge difference in your company's bottom line.
Business Management Trainer and Consultant