It's that time of year again…
That time when we discover what makes a procurement process work.
If you run a business, large or small, you are familiar with how important it is to develop a procurement strategy that fits your goals and needs.
Luckily for us, we've the opportunity to sit down with industry leaders who are more than happy to share with you their procurement success secrets.
Introduction
Jake Wernet is the Production Operations Manager at Sabanto, so naturally he's in charge of all the operations related to production at the company. More precisely he's responsible for managing all the contracts with Sabanto’s key manufacturers and overseeing its supply chain.
The Challenge
Sabanto is a start-up, so for Jake the biggest challenge in his procurement department is to find really high-quality manufacturers willing to work with them, to create their product under their terms and conditions even when they have only a limited number of orders.
This is a common issue in many start-ups, compared to larger companies, where suppliers and manufacturers have higher degrees of confidence.
The Differences
And speaking about start ups and large companies, Jake reminds us that besides the obvious difference between orders volume, there's also the matter of large businesses having bigger reputations in the market, something that definitely has an impact on the way potential suppliers react. Smaller companies on the other hand have to polish their selling skills and do their best to sell their vision and hopes to the suppliers they want to work with.
Customer perception
For Jake the biggest decision he had to make in his role was to determine who were the best suppliers. Answer questions like: Who can deliver that level of quality we need? Who's fully reliable for the entire journey? Because at the end of the day, what Sabanto wants is to leave a positive impression on their customers, so it's absolutely important to focus on the sort of perception you want to create on the market.
Choose a supplier with…
Willingness to work with you, that's one of the most important things you can look for when searching for new suppliers. The next is to choose someone who’s flexible enough to understand that as a start-up, your company can experiment with changes along the way, and of course, you'll want to stick with the option that gives you the most competitive prices possible.
Get to know your suppliers
The biggest advice Jake can give you if you're a start-up or a company that's just starting is to really make an effort to get to know the people behind the goods or services provided. Build relationships that go beyond a strict business level so you can feel confident in the partnership you guys are forming. Trust and respect go a long way when it comes to success.
Another important thing you won't want to miss is to incorporate an ERP system as early as you can. This is how guarantee full visibility into your procurement processes.
