Do you want to know the secret of a successful business?
It certainly starts with procurement.
Done right, it brings your company's products to the market while keeping your productivity levels high. But to achieve this you don't only need to identify the right supplier, there are also costs to oversee and relationships to build.
Fortunately, there are some great procurement experts ready to share their advice with you.
Introduction
Today's guest is Chris Turner, Co-Founder and VP of Czero, with an impressive background in mechanical engineering he's in charge of overseeing the development of prototypes for small and large companies.
The Challenge
When you work constantly developing prototypes and models that haven't been designed before, there's a high chance that you'll need to acquire pieces of equipment in a different way than other businesses do. For Czero, it was all about conversing with the suppliers and trying to get them out of their comfort zone.
Making difficult decisions
Procurement relies heavily on the decisions you make, so for Chris one of the most complicated decisions he has faced is related to timelines. To create the products his clients need, he and his team at Czero have to order materials with so much anticipation that sometimes they wonder about the risk of ordering something worth thousands of dollars before the final product is delivered.
Small companies
Czero has a team of around 30 people so you can say they're a small company, and when it comes to sourcing that can be a challenge. Compared to large and more recognized businesses, smaller ones have to deal with the undeniable fact that they aren't always on the top of preferences for the suppliers.
The reach of AI
Artificial intelligence is part of our reality, yes, even in procurement.
Many companies like Czero see a huge benefit from working with AI tools in terms of efficiency and reducing manual burden, however just like Chris points out, the real power lies in using different approaches, AI is important but so it's discussing with subject experts.
Rate your vendors
One thing that can help new entrepreneurs is developing a list of the vendors you are working with. Assign each with a grade so you know who's most responsive or who's offering you the best service.
