Ryan Jacob CAE of California runs a company that helps clients to solve fundamental commodity sourcing issues as well as monetizing challenges, which means that the business itself can focus on the area of business that they are in, without having to worry about commodity sourcing on top of this.
CAE Ryan Jacob of California. believes that top of the list, as it is when purchasing anything, is that you have to know your budget for each, this can be determined by clients desire, but is also influenced by previous expenditure, whether you want to increase business in a certain area, whether the prices of some products have increased or decreased significantly enough to impact on your total spend and so on.
Once you have the basis of what you are after and how much you want to spend, you then need to source the market. Speak to the current suppliers for their best price and let them know that you may be looking elsewhere. It is sometimes necessary due to the volume or speed that you want some products that you research the supplier and find out what they are capable of delivering for you. One way to do this is to prepare and send a supplier survey. This will help you determine their capabilities and their company ethos, along with determining whether they have a solid mature business or are just starting out and might be overpromising.
When all of the suppliers have received and completed the questionnaire, this may give you a chance to do some negotiating. You may be able to approach the company who you think is the most reliable but state that you have had a better offer elsewhere and see what they can do to accommodate you, suppliers will usually have room for negotiation when they supply you with their initial figures; this is what business is all about. You may reduce the initial companies to two or three who you are seriously considering.
Once you have all of the information you need the board should decide which company they feel is going to be the most efficient and effective. The next stage will be to prepare a bid and proposal for this company. This should include the specifications of all products and services and make your requirements and expectations crystal clear. It should include any delivery requirements, pricing structure especially if it is tiered depending on amount bought.
The next step will be to break the news to all interested parties regarding which company you have decided to go for. You should not be made to feel like a defendant having to answer to the companies that you haven’t chosen, but it is reasonable for them to ask for a little bit of feedback so that they know how their business can improve in the future.
Once the winning supplier has been notified then implementation plans can be put into action. There may be some transition from old to new that should suit all parties. Many departments across the business from finance to customer service may need to be aware of the change, so this change must be effectively and efficiently managed across the business.