The manufacturing industry exists within a world of radical uncertainties, and the global competition is growing ever bigger, changing the face of industrial manufacturing and manufacturing procurement. Not only do you need to be on your A-game to be competitive, delivering high-quality products to your customers, you also need to produce them at the lowest possible cost to make profit to be able to expand your business.
In this global market, the success of your manufacturing business depends on your ability to manage and balance increased customer expectations and demands, while at the same time protecting margins. In other words, your company needs to deliver: Lower prices, Higher quality, Newer features, More customization and Shorter production times while also maintaining market share and managing costs effectively.
The procurement in a manufacturing company is one of the areas with the biggest potential for cost savings by finding the best suppliers and negotiating with current one’s to gain better contract deals. It is often the go-to starting point for a company to develop their business and reduce costs.
Frequently Asked Questions
Benefits of a procurement tool for the manufacturing sector
- Efficient sourcing
- Reduced costs
- Manufacturing procurement cycle transparency
- Quality control
- Minimized risk
- Global indices data dashboard
Why is it important to perform a manufacturing cost analysis?
- Cost-saving opportunities
- Clear forecasts of potential costs to be incurred
- Financing opportunities
- Eliminating redundant investments
- Selection of economic, high-quality materials
- Product re-engineering to remain competitive
What is procurement management?
Using a manufacturing procurement strategy helps you select the most cost-efficient choices that provide long-term returns for your business
Common problems in manufacturing procurement
- Inconsistency in procurement data
- Supplier-side compliance problems
- Low-quality resources
- Volatile commodity prices
- Communication gaps
Adopting manufacturing procurement software can help tackle common problems faced in the manufacturing procurement industry and align your procurement strategy in the right direction.