Guide to Group Buying for Small Businesses

Small businesses are the backbone of our economy.  They’re the noble “little guys”, greasing the wheels of commerce with their entrepreneurial vigor.

But when it comes to procurement, small businesses don’t have the same advantages as larger organizations.  Capital to procure strategically is limited in these entities, where cash flow can often drive procurement decisions.

But there’s a way for small businesses to obtain the clout of much larger organizations – with a GPO (Group Purchasing Organization).

The GPO opens the door to obtaining the leverage of the large-scale funding needed to obtain deep discounts that keeps costs low, contributing to the overall health of the organization.

They say it takes money to make money and GPOs kind of prove that.

Numerous advantages.

GPOs do so much more than reduce costs for small businesses.  They source and vet vendors and manage contracts with them.  They do this by pooling the resources of members to create leverage that gets small businesses in the door and taking advantage of the power found in numbers.

That power is collective purchasing, matched by freeing the time your people spend on the nuts and bolts of procurement.  With data analytics to ensure the integrity of supply chains and to measure results, your team is freed to pursue other organizational priorities with the power of a GPO.

Your small business has access to a much broader supplier pool, with the further advantage of communications which are managed by the GPO and thus, greatly simplified.

What you need – every day.

Economies of scale prevent small businesses from getting the maximum bang for their buck.  They can’t buy in large lots, so they wind up paying more for their every day needs.  Office supplies, janitorial supplies, cell phones and other daily purchasing requirements can be had at a much better price point when small businesses call on the power of community, embodied by the GPO.

By building partnerships with major suppliers, GPOs extend the cost reduction benefits enjoyed by larger companies to small businesses.  By procuring goods and services collectively, GPOs level the playing field, helping small businesses toe the bottom line by keeping everyday expenses in check.

When choosing a GPO, make sure you read the fine print.  Know what the organization’s dispute resolution process is, in the event of supplier missteps.  Know who the vendors in the GPO’s supply chain are and that you’re comfortable with them.  Make sure that the value derived from joining a GPO exceeds the cost of membership, or other attendant fees.

Eyes wide open – savings ahead!

CenterPoint Group – trusted for 10 years.

As a trusted procurement advisor in the GPO market for 10 years, CenterPoint’s mission is rooted in integrity, value and leadership.  We leverage a pool of member resources to create an average 96% savings ratio for small businesses like yours.

At CenterPoint, we know there’s strength in numbers, especially for small businesses.  If you’re ready to experience the power of collective procurement, contact us.  We’ll show you how you can save immediately, with a free analysis.

The post Guide to Group Buying for Small Businesses appeared first on Centerpoint.

source https://centerpointgroup.com/guide-group-buying-small-businesses/

Procurement vs. Purchasing

Procurement and purchasing are often used interchangeably as words, but they’re two distinct animals.  In fact, purchasing is part of the procurement cycle.  It’s not the whole picture, though.

Procurement is an end to end process, with the result of that process being purchasing.  From vendor selection and vetting, to establishing payment schedules and contract terms, the purchase begins with finding what you need, setting up responsive relationships and then defining them in a continual process of renewal.

There’s a lot more to it than just buying stuff.

A core service.

Procurement is an expression of the way your company does business, so whether your procurement is in house or outsourced to a GPO, it’s a function of your business that touches on key aspects of its infrastructure.

Your corporate identity is touched on by procurement, due to the ethical framework from which vendors are sourced.  This guides decisions about vendors and their management, through instruments like codes of conduct.  Corporate identity is linked to market placement, wherein your customers and their relationships with your company and its identity is played out.

Corporate strengths and weaknesses, as well as growth and long-term goals are also implicated in the procurement process, as cost reductions via procurement enable organizational goals.  The impact on profitability and this factor’s importance to reinvestment in your business are obvious.

Procurement directly influences the strength of your enterprise by helping to make the most from available resources and growing those resources for the future.

Purchasing – the last link in the procurement chain.

So, procurement vs. purchasing is a matter of a process against a function in that process.  These terms are often interchangeable, but they probably shouldn’t be.

Purchasing is a simple transaction, whereas procurement is a strategic activity, with a clear set of priorities, linked directly to corporate identity, philosophies and goals.

Much of procurement’s work is in protecting the brand of the organization it’s procuring for in the vendor selection process.  Ensuring sustainability and ethical practice down the supply chain is a public relations exercise.  It matches corporate identity with suppliers who are equal to the task of maintaining it in good order, without damaging it.

Procurement as a core function of corporate strategy is a complex set of actions which calls on procurement teams to foster transparency, negotiate mutually agreeable contacts, maintain solid relationships down the supply chain and interpret data effectively, with an eye to continual improvement in the process.

Procurement vs. purchasing is not unlike a comparison between a 747 and a glider.  One is complex.  The other, simple.  Because they’re two related, but very distinct functions, we felt we needed to clear the air with this simple primer on the topic.

CenterPoint Group.

CenterPoint Group is a trusted procurement advisor, serving our members by delivering substantial savings on everyday purchases.

From office supplies to cell phones and shipping, we leverage a pool of member resources to bring members cost reductions on a range of goods and services.

Ready to take procurement for the next level?  Contact us for a free analysis.

The post Procurement vs. Purchasing appeared first on Centerpoint.

source https://centerpointgroup.com/procurement-vs-purchasing/

3 Supplier Negotiation Strategy Tips

Pricing for goods and services can be volatile in a global market.  Procurement professionals are continually in a process of negotiation and renegotiation with suppliers for this reason.  But some companies opt for the easy way out, choosing a contract which writes the process in stone.

While that may be easier, it’s not going to maximize your spend.  For those who haven’t done things that way, a process of analysis and re-tooling must be constantly pursued.  In this post, we offer you 3 supplier negotiation strategy tips to smooth the way forward.

1. Competition and transparency.

Staying competitive is important to your company, so entering the negotiation process with that in mind is key.  You’re in negotiations to get the best possible deal for your company, with the best possible products, from the best vendors you can source.

Doing your homework on pricing is what creates the tension you need in the negotiating process to leverage better pricing from the vendors you’re talking to.  Ensure that your vendors are compatible with your company’s mission and that you share common values.

Having a code of conduct in place for vendors will help you narrow your search.  In discussing this with potential vendors, it will soon become apparent who’s most aligned to your corporate values (which is just as important as price).  Let vendors know that ethical workplaces which follow sustainable practices are always at the front of the line, if that’s the way your company does business.

2. Legal matters.

One of the most important steps you can take when entering negotiations is to be aware of legal and regulatory guidelines concerning vendors in their specific jurisdictions.  This can be a complex task, with regulations and guidelines on every imaginable level of government.

If you’re not an expert on navigating these complexities, bring one on board to ensure you don’t run afoul of regulations governing bidding with local authorities.  That can mean fines and penalties.

3. Hire an expert.

Dismissing the complexities of procurement is a mistake.  Someone with knowledge of the sector and its intricacies should be in place to oversee the process from end to end, to make sure the supply chain is on point and those individual vendors aren’t letting you down.

Hiring a procurement professional with a supportive team is one way to do this.  Another way is the GPO.  The Group Purchasing Organization not only strategically leverages the resources of many other companies to obtain deep discounts, it manages and negotiates contracts, bird dogs your supply chain and analyzes data to bring its members the best goods and services at an exceptional price point.

Centerpoint Group – collective procurement power.

Your people are moving your company forward and helping you meet organizational goals.  While they’re doing that great work, CenterPoint is a GPO which has led the sector for 10 years.

We’re able to deploy collective procurement power which brings your company exceptional savings on every day needs, from cell phones to office supplies.

Contact us for a free analysis.  Take your procurement to the next level.

The post 3 Supplier Negotiation Strategy Tips appeared first on Centerpoint.

source https://centerpointgroup.com/3-supplier-negotiation-strategy-tips/

Should Your Business Go Cashless?

Everyone has the dream of soaking in a tub full of money or dancing as dollar bills pour from the sky. There is just something so comforting about the feel of cold hard cash resting in the palm of your hand. While cash feels great, it is burdensome for a business owner. Cash also makes tracking how well your business performs more difficult. Not only are there tons of benefits to becoming a cashless business, you live in a world where most people do not carry around cash anyway.

Reduced Risk of Theft

Arguably, one of the largest benefits of a cashless business is the reduced risk of theft. As a cashless business, you do not have anything in the registers or safe for someone to take. So, robbery isn’t a cause for concern. Although the goal is to hire the right employees so theft is never a concern, no cash means no employee theft, either.

Reduced Human Error

Trying to count money while dealing with an irate customer is a difficult task. It is easy to make a mistake while stressed, overwhelmed, or trying to multitask. Mistakes happen when employees handle cash, and the mistakes often end up costing your business money. Going cashless decreases human error when dealing with transactions.

Flexibility

A cashless business has a lot of options to consider. For example, a cashless business can convert to an online business, as customers who do not pay cash do not have to come to your physical store. Not accepting cash as a form of payment gives you the freedom to run your business from just about anywhere.

Avoiding Counterfeit Bills

In a perfect world, your employees catch counterfeit bills before accepting them as a form of payment. Unfortunately, the world is not perfect. Counterfeit bills slip by even the best of employees. It is a little more challenging for someone to use a counterfeit credit or debit card as a form of payment. Furthermore, your payment system prevents you from accepting a credit or debit card if there is not any money in the individual’s account.

Consumers Don’t Carry Cash Anyway

Statically, you live in a society where consumers do not carry cash anymore. In fact, consumers use cash more at fast food restaurants than any other type of businesses. Even at fast food joints, only 33 percent of customers use cash as a form of payment. The other 66 percent use credit card and debit card payments. Statistics show that 73 percent of Americans use cash as a form of payment less often than they did a decade ago.

As a business owner, you must decide if dealing with the hassle of cash is worth appeasing the 25 percent of your customer base that carries cash. Most business owners find the hassle of dealing with cash to cost more than the small number of customers lost over going cashless.

Everyone loves the sound of a crinkling wad of cash in his or her hands. However, that doesn’t mean cash is good for business. Consider the pros and cons of going cashless before making an informed decision.

The post Should Your Business Go Cashless? appeared first on Centerpoint.

source https://centerpointgroup.com/business-go-cashless/

Innovative Solutions Needed for Future Office Requirements

We’ve talked quite a bit on this blog about Millennials and the often-overlooked Generation Z.  As people in these age groups are poised to dominate workplaces by 2020, employers are answering at least some of their demands for a less hierarchical and more flexible workplace.

Some of what that means is working remotely.  With strong infrastructure now in place to support remote work, it’s never been so easy.  Flexible work schedules which don’t demand a 9-to-5 day are also becoming increasingly the norm.

With the advent of the Cloud, employees of all ages are finding that more employers are willing to accommodate a different and less structured approach to the workplace, but there are other changes on the horizon.

Innovative solutions needed for future office requirements are springing up all over the place.

“Serviced” offices.

If the United Kingdom is any indication, serviced offices are at least part of the revolution in the traditional workplace.  Offering companies exceptional flexibility and nimble start up, these offices come equipped with everything from furniture to internet connectivity.

Deloitte reports that serviced offices have grown by almost 70% over the past 10 years.  Demand is growing for this simple, innovative solution, attractive because of the incredible flexibility and freedom it offers.  This is especially true for tech companies and small to mid-sized businesses.

The adjustable workplace.

Without having to commit to long-term arrangements, companies are discovering that serviced offices provide them with all they need, in a latch key set up.  Adjustable and negotiable, this means that companies can downsize or grow, depending on their projected needs, without having to resort to breaking a long-term lease which no longer serves their needs.

Technology companies find this arrangement attractive, due to the volatile nature of their sector and the unpredictable nature of their office space needs.  With more employees choosing to work remotely, at least part of the time, need can fluctuate drastically.

The serviced office trend is set to continuing growing exponentially in the UK, with the trend being diffused internationally.  The allure of lower risk and associated costs, as well as the attraction of finding all you need the moment you walk through the door, is driving the rise of serviced offices.

As the traditional workplace slowly recedes and young, technologically savvy people swell the ranks of the workforce, innovative solutions needed for future office requirements will continue to evolve.  A smaller footprint and great worker mobility are creating a whole new era of working life.

CenterPoint Group.

At CenterPoint Group, we believe there’s strength in numbers.

We’re a trusted procurement advisor which leverages pooled member resources to bring businesses outstanding cost reductions on day-to-day needs like cell phones and office and janitorial supplies.

With $850 million in collective indirect spend, we revolutionize procurement, demonstrating the strength of people working together toward a common goal – profitability driven by cost reduction in procurement.

For 10 years, we’ve been bringing our members outstanding savings.  When you’re ready to take your procurement to the next level, contact us for a free analysis.

The post Innovative Solutions Needed for Future Office Requirements appeared first on Centerpoint.

source https://centerpointgroup.com/innovative-solutions-needed-future-office-requirements/

Guide to Getting the Most out of a GPO Partnership

So, you bought a membership at the gym to keep your New Year’s Resolution.  For a month or two, you were going great guns (and getting great guns).  But as the spring came and the weather improved, you found that your resolve was more of a seasonal thing.  By May, your membership card languished in your wallet, unused, but still paid for.

You’re not alone.  There are many people out there with the best intentions, but resolve is a fragile thing than can melt in the first rays of the spring sunshine.  You didn’t derive maximum benefit from your gym membership and that makes feel a little sad.

But how much sadder it is when you’re not getting the most out of a Group Purchasing Organization partnership.  That makes us sad, too, so we’ve written this brief guide to getting the most out of a GPO partnership.  We’re helpful that way!

Analysis.

The first step in analyzing your GPO spend is to determine whether there’s overlap or duplication.  Also, check to ensure you’re utilizing all the possibilities offered.  For example – you may not know all the types of products and services your GPO offers.  If you’ve stopped at janitorial and office supplies, you could be missing out on substantial savings on cell phones, or even fuel for your fleet.

With CenterPoint Group, you can take advantage of our pool of member resources for cost reductions on shipping and car rentals, too.  If you’re not accessing every possible channel offered by your GPO, you’re not deriving the maximum benefit from the partnership.

Talk to your GPO.

As the old saying goes, “the squeaky wheel gets the grease”.  You may not see the services or goods you’re interested in when reviewing your contract, so call a representative at your GPO.

If you’re calling CenterPoint, we’ll hear what you’ve got to say and then we’ll connect your needs to the needs of other members.  It’s amazing what we’re willing to do when our members express a desire for access to something not listed on their contract.

Derive maximum benefit.

A GPO delivers maximum benefit when you’re sourcing the full range of what they’re able to source on your behalf.  That saves you time, money and the headache of vendor sourcing and negotiations.  At a GPO like CenterPoint, we do it all for you and the rest of our members.

It’s in our members our power to procure for less resides.  Because we leverage $850 million in collective indirect spend, we lower member business costs by delivering cost reductions for a range of goods and services, fulfilling every day purchasing requirements.

CenterPoint Group knows there’s strength in numbers.  That’s why we provide you with a full-service procurement resource, managing your supply chain and driving our procurement process with data analytics.

Time is money and CenterPoint is a procurement resource that saves you plenty of that precious commodity.

When you’re ready to take your procurement process to the next level, contact us.  We’ll provide you with a free analysis.

The post Guide to Getting the Most out of a GPO Partnership appeared first on Centerpoint.

source https://centerpointgroup.com/guide-getting-gpo-partnership/

Why Millennials’ Amazon Experience Is Shaping Vendor Selection

Where once the gold standard for retail was the big brick and mortars, today it’s sited in online giant Amazon.  Millennials have grown up with online accessibility to the goods and services they need.  And Amazon has perfected its approach to creating an online marketplace based primarily on the response of this demographic to the platform.

Why millennials’ Amazon experience is shaping vendor selection in the arena of procurement is that they want the process involved to be as effective as what they’ve seen on Amazon.  As millennials take their places in leadership tiers, pressure from them for procurement entities to conform to these new standards will only increase.

The usability standard.

If there’s one thing users love about Amazon, it’s the usability.  User experience at the online retail monolith is seamless and because of that, Amazon is increasingly what people compare other buying processes to.

They’re asking repeatedly why the standards and processes used at Amazon can’t be translated to other commercial models, thus streamlining them, as well as making them more flexible and less static.

Now there’s Amazon Business, which has underlined the service’s utility for those procuring for cost reduction and profitability.  With the ability to compare multiple suppliers in real time, based on criteria like price, product, shipping times and other relevant information, it’s clear how Amazon’s model could serve procurement.  With this B2B model, it’s easy to find exactly what you’re looking for.  You even have access to reviews of the vendors and the quality of their products.

Buyer control.

Because of Amazon’s ability to allow buyers to compare vendors side by side, as well as to review information about them and their products, the buyer is given a huge measure of control.  That changes the game.

Traditionally procurement can get bogged down in the status quo, when it comes to vendor selection.  The tried and true rarely budges, except in rare instances.  With the ability to compare vendors and read what other buyers say about them, buyers are given more control and more selection.

Amazon has created a level of urgency for reform in procurement which can be met with innovation in the sector, most probably driven by the insights of millennial thought leaders.

The world of the millennial.

Millennials take Amazon entirely for granted.  They’re accustomed to having control in their consumer journey and being offered myriad possibilities for who to purchase with, based on the criteria most important to them.

Keep in mind that millennials are poised to become 50% of the workforce by 2020.  That figure represents the coming challenge to traditional ways of doing things and it’s a challenge we should welcome.  Millennials are bringing their world to the existing one and with that comes innovation and a refreshing perspective.  Embracing that perspective is what will bring positive change.

CenterPoint Group – strength in numbers.

CenterPoint Group is a trusted procurement advisor.  We leverage a pool of member resources to deliver outstanding cost reductions.

Contact us for a free analysis.  Discover strength in numbers.

The post Why Millennials’ Amazon Experience Is Shaping Vendor Selection appeared first on Centerpoint.

source https://centerpointgroup.com/millennials-amazon-experience-shaping-vendor-selection/

How Consumer Shopping Habits Are Impacting the Packaging Supply Chain

Today’s consumer demands convenience.  They want to get in, find what they want to buy and get out.  With more people choosing to live alone, there’s also an increased demand for smaller sizes, but single living isn’t the only driver of that trend.

When it’s convenience shoppers are looking for, they’re more likely to jump off the bus or metro and stop at the corner convenience store than they are to head to the grocery.  That means radically different packaging demands in the supply chain, due to different inventory practices and limited shelf space.

How consumer shopping habits are impacting the packaging supply chain is on the manufacturing level.  Let’s have a look.

The rise of convenience.

As already noted, consumers today are more likely to stop at a convenience store to quickly grab one or two items, than to go on a full-scale grocery expedition.  In the United Kingdom, convenience stores are slated to grow 22% in value.  This alone demands a radical shift in the way manufacturers approach packaging.

Because of smaller inventories, due to smaller storage areas and less shelf space, outlet-ready packaging needs to be downsized to meet the increased demand.  Packaging that works in a large-scale retail outlet isn’t going to be practical for a convenience store.

Smaller sizes mean a shift in manufacturing emphasis.  Machinery needs to change, or be supplemented, adding cost to the supply chain which is reflected at the procurement level.  Greater accuracy is required for smaller sizes, as well as labeling which is still legible, but which has been adapted to the smaller product unit size.

The challenge for procurement/suppliers.

Often, suppliers are meeting the challenge presented by changing consumer habits by passing the cost of adaptation on to procurement.  This is short-term thinking, as the market shift will eventually fade in the face of increased focus on a secondary market.  In other words, investments will balance themselves out, over time.

Suppliers should also be aware that meeting this challenge is an opportunity to change packaging to better reflect the sustainability requirements of modern consumers.  In other words, less is more.

Acknowledging the changes publicly is a chance to engage with consumers, advising them that smaller, store-ready packaging is addressing their demand for less packaging, more practical packaging and less frivolous packaging.

Answering that need may even help to mitigate the added cost of production involved.  In every challenge, there’s an opportunity.

How consumer habits are impacting the packaging supply chain may be an invitation to some creative thinking to address shifting consumer attitudes concerning sustainability and waste.

CenterPoint Group – collective procurement professionals.

For 10 years, CenterPoint has been leveraging the collective resources of members to create conditions for material cost reductions on everyday purchases for businesses like yours.

At CenterPoint, we believe in the power of numbers and how we can do more together than we can independently.  From cell phones, to wi-fi, to office supplies, our resource pool is a collective procurement solution that saves you money.  Contact us for a free analysis.

The post How Consumer Shopping Habits Are Impacting the Packaging Supply Chain appeared first on Centerpoint.

source https://centerpointgroup.com/consumer-shopping-habits-impacting-packaging-supply-chain/

The Ugly Truth: Your Procurement Data Is Holding You Back

Data is a key driver of procurement’s value.  When it’s improperly used and organized, though, it can work against you.

Your procurement data is holding you back if it’s not supporting a sustainable supply chain, for starters.  If you can’t see it, you can’t manage risk, sustainability, compliance and a host of other factors.  So, the ugly truth:  your procurement data is holding you back, is something every procurement department and agency needs to address decisively.

If your data game isn’t up to par, you’re not alone.  A surprising number of organizations have the same problem.  It’s even more surprising when you consider what they’ve spent to bring their technological systems up to date.

Updating spend analytics.

The KISS rule (keep it simple, stupid) has been around for awhile, but so have traditional spend analytics.  These are too often ineffective, as they fail to encompass the intricacies of procurement and its many challenges.

Not being “procurement smart”, traditional systems aren’t adapted to the sector, relying heavily on automated categorization.  They’re easily thrown by deviations from their norms embodied in factors like human error, compliance issues and data fragmentation, as it’s streamed into multiple systems which should be harmonized to be effective.

Analyzing the analysis sounds like a lot of work (and we’re not going to lie – it is), but it’s well worth doing the heavy lifting to have access to sound data that reflects reality.

A spend analytics system tailored to the direct needs of procurement is simplified.  Distilled down to a series of categories which more properly reflect the requirements of the sector, there is less to manage, even if you need to get there by the long route.  In the end, it’s worth it.

Your best sets of eyes.

Refining your data game should involve your most highly skilled procurement team members.  They can identify categories in upgraded systems which should take precedence (as they add value).  For example, data connected to auditing around compliance is an imperative.

Working with data from the old system, your best people can further refine spend analytics, making them less unwieldy and more readily intelligible to better serve the projects of cost reduction and profitability.

Procurement is a complex world.  Supply chains which are not transparent and readily visible in your data are a liability you can’t afford.  Rolling up the sleeves of your most skilled professionals to reform your data is a ticket to added value that makes your procurement process more effective and much more attractive to potential clients and investors.

CenterPoint Group – supporting the bottom line.

As a trusted procurement advisor for 10 years, CenterPoint is a member-based procurement solution that brings companies exceptional cost reductions on everyday purchases.

From corporate vehicle fleets, to cell phones, to janitorial and office supplies, we leverage a pool of member resources to bring you material savings.

If you’re ready to draw on advantages offered by a collective procurement resource, CenterPoint is ready to help.  Contact us for a free analysis and discover the power of numbers.

The post The Ugly Truth: Your Procurement Data Is Holding You Back appeared first on Centerpoint.

source https://centerpointgroup.com/ugly-truth-procurement-data-holding-back/

The Knowledge, Tools and Processes You Need to Work With Millennials

Millennials have been an ongoing topic of conversation since this generation first received the now well-known label.  Born in the period between 1980 and the year 2000, discussion of the generation ranges from the denigrating to the hopeful.

They’re derided as entitled, lazy and distracted by their mobile devices.  They want to work as little as possible.  They’re brilliant, arrogant and disinterested in all the totemic icons of the working world so beloved by the group they’re most regularly compared to – boomers.

Truth be told, while we may have our misgivings about millennials, they’ll form half the workforce in only 3 years, so they’re not going anywhere.  In fact, they’re going to be leading us before we know it.

The truth about millennials.

Millennials see the world through an entirely different lens.  Raised with technology as a part of their lives, they rely on it and use it as a portal to the world around them.  Curious, opinionated and collaborative in their approach to work, they’re keenly interested in horizontal, non-hierarchical social structures, travel and discovery.

The truth about millennials is that they’re driving innovation as they become a staple of the workforce and that’s a challenge demanding to be met.

Technological change is fun.

This generation has no fear of change.  It embraces it and wants to be part of it.  Having millennials around means you will have the support of technologically-gifted partners with a fascination for emerging tools like artificial intelligence, robotics and big data analytics.

For those who struggle with these realities, millennials offer a friendly window onto a world they’re unchallenged by, comfortable with and intimately engaged in.  These are advantages recruiters need to keep in mind, when considering millennials for positions in their departments.

The millennial opportunity.

Bringing millennials into the procurement fold promises to help drive impending and ongoing changes like the ones mentioned above.  It also gives procurement professionals a chance to shape new leaders and to learn from the millennial experience, as they do so.

Millennials come with outstanding verbal facility and an ability to decipher the advantages of emerging technologies in every context they’re found in.  A combination of youthful energy and almost preternatural technological savvy, millennials bring procurement a sterling moment it can’t afford to miss.

It’s with millennials that this sector is poised to grow to its full stature, leveraging their natural gifts and generational advantages.

Procurement recruiters should view millennial intake as the harbinger of transformational change and the next stage in the sector’s development.  What they bring to the party is something entirely fresh, eminently valuable and thoroughly contemporary.

Centerpoint – leading edge procurement.

For a decade, CenterPoint has been leading the procurement field, by rooting its operations in a dedication to integrity, value and leadership.  A member-based procurement solution, we leverage our pooled resources to extend members exceptional savings on their everyday purchases.

When you’re ready to bring your procurement online for outstanding cost reductions, CenterPoint is here.  Contact us for a free analysis and discover the power of numbers.

The post The Knowledge, Tools and Processes You Need to Work With Millennials appeared first on Centerpoint.

source https://centerpointgroup.com/knowledge-tools-processes-need-work-millennials/

The Challenge of Supply Chain Bottlenecks

Bottlenecks are a fact life in the world of procurement.  From human error (including a lapse in attention), to civil upheaval, unethical labor practices and unsafe workplaces, bottlenecks stop up the supply chain often enough that they can put a big dent in profitability.

Can procurement professionals see bottlenecks happening and what can they do to mitigate the damage once a bottleneck has been cleared?  The challenge of supply chain bottlenecks isn’t going away anytime soon, despite the best efforts of institutions to battle it.

Let’s examine some tools to make bottlenecks less of a fly in the ointment.

The Volkswagen model.

Automotive icon, Volkswagen, has developed a model to address the challenge of supply chain bottlenecks, which is in play prior to bottlenecks happening.  Technology, of course, plays a crucial role.

By maintaining communication with all the links in the supply chain (particularly those proven to be most exposed to bottlenecks), Volkswagen has managed to minimize the impact of this perennial problem.

Standardized processes allow the company to anticipate potential bottlenecks before they can become brand-damaging incidents with disproportionate impact.  Standardization brings together disparate departments who work in concert to address potential issues and resolve them.

After the blast.

A nimble response to bottlenecks which are unavoidable is also in place at Volkswagen, based on standardization and rapid communication between the links in the supply chain.

In the event of a civil disturbance or other unanticipated events, the company deploys other shipping means to reduce the amount of time lost to the bottleneck in question.

Working collaboratively, Volkswagen calls on stakeholders to arrive at an appropriate response in every instance.  Procurement never works in isolation, but with a complex of professionals who can all play a part in reducing the impact of bottlenecks.

Bottlenecks happen, but how procurement responds to them is key to successfully meeting the challenge they present.  Communication between stakeholders and across departmental lines is key to the effort.

Technology is also a critical support which helps procurement rapidly deploy solutions like the ones found by Volkswagen.  Rooted in clear communication and standardized processes, the challenge of bottlenecks can be effectively answered with creativity and innovation.

At CenterPoint, we believe there’s a solution to every supply chain problem you can name and companies like Volkswagen are leading the way.

CenterPoint Group – the power of numbers.

A member-based procurement advisor, the CenterPoint Group leverages the collective resources of our members to create the conditions required to deliver estimable cost reductions.

We give companies like yours access to superior savings on institutional needs like your corporate fleet, cell phones and janitorial supplies.  With the power of numbers, we save our members money and that’s good news for the bottom line.

If you’re ready to elevate your procurement process with the power of numbers, CenterPoint is here to help.

Contact us.  We’ll prepare a free cost analysis to demonstrate the power of procurement by the numbers.  Bottlenecks in the supply chain may be an ongoing challenge, but the professionals at CenterPoint have the nimble procurement solution.

The post The Challenge of Supply Chain Bottlenecks appeared first on Centerpoint.

source https://centerpointgroup.com/challenge-supply-chain-bottlenecks/

Should You Be Meeting Procurement’s Needs or Those of the Business?

Procurement doesn’t exist for its own sake.  It exists to serve the needs of the business it’s purchasing for.  That said, a business which knows just how valuable procurement is to its profitability provides the resources needed by their procurement professionals to do the best job possible.

Procurement is in place to serve cost reduction, which in turn serves profitability.  But professional purchasing is a value-added function which, by its very existence, serves the needs of the business it’s purchasing on behalf of.

Influence and procurement.

Procurement has its fans, in the final analysis, but it also has its detractors.  With an eye continually leveled on finding savings to feed the profit margin, procurement professionals are often seen as prophets of undeclared austerity – just one rung beneath the bean counters.

Increasingly, companies aren’t looking to place people in procurement who aren’t necessarily experienced in the realm of purchasing.  Rather, they’re seeking recruits who model good business instincts and an exceptional facility in inter-personal skills.  This trend may prove to be the missing link when it comes to the institutional influence procurement people currently find elusive.

Internal customer service.

Automation is looming on the horizon as a solution to the procurement influence gap.  When those in the sector are heavily focused on cost savings, but don’t communicate the added value their work brings to the business, they’re missing a valuable opportunity.  Colleagues in other departments need to see clearly what procurement is producing, in real terms, and brought to an understanding of its intrinsic value.

That’s where people skills and intentional communication come in.  To avoid the threat of full automation replacing the need for human resources, it’s essential that procurement make the leap beyond the rung below the bean counters of the corporate world.

Servicing the interests of internal customers and developing relationships with them is one way to ensure that automation doesn’t take over.  In the same way that brick and mortar retail has suffered because of a failure to offer a value-added customer experience in response to online retailers, procurement professionals need to stand up and get out of their penny-pinching silo.

Results + presence.

Clearly procurement is in the business of delivering cost reduction results on a consistent basis, but they can signal value to their fellows by being present to their interests.  But being present is just the beginning, with analytical tools now becoming increasingly important to the sector.  The value of these tools heralds a whole new age of the procurement process and, naturally, more added value.

CenterPoint Group.

We’re trusted procurement advisors who utilize our member base’s pooled resources to deliver outstanding cost reductions on a variety of infrastructure needs, from office supplies to cell phones.  Because we’re working from a significant advantage in terms of liquid assets, we’re able to provide our members with material savings.

If you’re ready to elevate your procurement process to better serve the needs of your business, contact us for a free analysis.  Discover the power of numbers, with CenterPoint.

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source http://centerpointgroup.com/meeting-procurements-needs-business/

Making Procurement More Sustainable

We’ve discussed supply chain transparency in a recent blog post and the importance of knowing how and where your goods are produced.  In this post, we’re going to talk about making procurement more sustainable.  Transparency is part of the way forward in terms of sustainability, but the project encompasses a complex of institutional moves to make it possible.

The 2013 Global Corporate Sustainability Report from the UN reveals that while businesses are making strides when it comes to setting expectations, implementation continues to lag.  Without taking direct action, procurement’s expectations of suppliers have no teeth and that’s a problem when it comes to sustainability.

While building sustainability into the supply chain is a complicated undertaking, failing to attend to it may prove much costlier to companies in the long run.  Let’s examine some of the building blocks of making procurement more sustainable.

Mapping.

Understanding the journey of goods and services is a key building block in assuring sustainability.  Once all links in the chain have been identified, it’s down to procurement to ascertain exposures at every point along that journey.

Identifying problems can then inform how to proceed.  Specifically, supply chains may need to be abbreviated for greater control.  With fewer links in the chain, procurement will find that the job of monitoring becomes less arduous.

Communication.

Your expectations in terms of supplier sustainability should be clearly communicated through instruments like codes of conduct.

The UN has published a guide for improving sustainability through supply chains, entitled “Supply Chain Sustainability – a Practical Guide for Continuous Improvement”, providing advice about crafting an effective supplier code of conduct.

Performance evaluation.

Many companies have set up a simple way to collect information toward evaluating supplier compliance, in the form of questionnaires and/or surveys.

Self-assessment by suppliers provides a nexus for communication between procurement and suppliers as to where they are in the sustainability spectrum and how they’re improving.  This also supports the quest for information about points on the supply chain which require active reform.

Questionnaires should include evaluations of environmental factors like energy and water usage.  This allows for collaborative efforts to improve sustainability, by making areas of concern clearer.

Constructive evaluations allow for open communication between procurement and suppliers and make it much more likely that sustainability will be improved through each link of your supply chain.  These evaluations can be supported with targeted campaigns which draw on the knowledge of top tier links and training programs which provide education about sustainability through all tiers.

Making procurement more sustainable is a key imperative in today’s market.  Demands for sustainability are growing, encompassing environmental, labour and safety factors.  Managing sustainability in an intentional way not only advances the project of global sustainability, it protects companies from public relations exposures which can heavily impact their ability to do business.

CenterPoint Group.

CenterPoint Group is a member-based procurement advisor which leverages the pooled resources of members to reduce the cost of everything from cell phones to janitorial and office supplies.

There’s cost saving power in numbers.  Contact us for a free analysis.

The post Making Procurement More Sustainable appeared first on Centerpoint.

source http://centerpointgroup.com/making-procurement-sustainable/

The Challenge of Supply Chain Transparency

Transparency is a keyword in an interconnected marketplace.  The global nature of business today and the rapid pace of technological change has prepared the way for procurement professionals to meet the challenge of supply chain transparency.

Not knowing what’s going on in your supply chain is not an option.  You need to be aware that the best practices your organization holds dear are modeled throughout your supply chain.  Unethical treatment of laborers and unsafe workplaces are factors you need to be aware of, to protect your public profile and to ensure that your organization doesn’t suffer because of a lack of knowledge.

When your supply chain transparency is poor, you’re in the dark about where production takes place.  The murk of distant sweatshops is obscured from view in the absence of supply chain transparency.

Legislative action.

The European Union has led the way with respect to transparency, demanding that all companies doing business in the EU with revenues in excess of €750 million be subject to regulation, to ensure full compliance with legislation governing workplaces.

While measures like this are helpful, there’s still a great deal companies can do toward piercing the veil where transparency is concerned.  Collaboration with suppliers and technology offer ways and means to supplement legislative efforts with corporate action.

Collaboration and technology.

Measuring supplier response and quality via data is one way procurement departments can ensure that suppliers are toeing the ethical line.  Another is finding direct links to suppliers who are in jurisdictions which have taken legislative action that must be complied with to do business.

But collaboration is also proving to be a strong response to a lack of transparency.  Partnering with campaigns for fair labor practices and organizations promoting trade is one way in which corporate entities can make a public commitment to supplier transparency and compliance.

While giving procurement professionals a means of vetting the practices of suppliers through the efforts of third parties, collaboration also speaks to the need for an ethical public profile.  In the end, everyone wins, from the woman sewing a button on a blouse in Bangladesh, to the operation procuring, to the suppliers, themselves.

Strategic collaboration, in concert with legislative action and tools like periodic inspections and reports provides a complex of ways to meet the challenge of supply chain transparency.

CenterPoint Group – procurement by the numbers.

At CenterPoint Group, we’re procurement professionals, leveraging the pooled resources of our member base to obtain goods and services at reduced cost.  Procurement by the numbers brings operations everywhere the opportunity to optimize their processes, delivering superior ROI and significant savings.

We believe there’s strength in numbers and our track record supports that assertion.  When you’re ready to take your procurement process to the next level, assuring exceptional savings on everything from vehicles to janitorial supplies, CenterPoint is here to help.

CenterPoint is dedicated to the ethical treatment of production workers, which translates into risk mitigation for your operation.  Contact us and we’ll provide you with a free analysis.

Discover the power in numbers, with the CenterPoint Group.

The post The Challenge of Supply Chain Transparency appeared first on Centerpoint.

source http://centerpointgroup.com/challenge-supply-chain-transparency/

The Future of Automation In Procurement

Administration is the grand bugaboo of every operation doing business, whether it be in the realm of consulting, procurement, or any other sector.  The problem with administration is that it’s an entirely necessary function to keep the ball rolling, but it’s time-consuming, human resources heavy and costly.

But new models of automation are making administration a more manageable, cost-effective function.  Robotics are now capable of taking over small day-to-day tasks that otherwise require an undue amount of attention from human workers.

The future of automation in procurement promises a leaner way of approaching the task, unburdened by the resources drain currently represented by administrative tasks.

What RPA (robotic process automation) can do.

Functions normally performed by a human who might be doing other things can be managed by RPA.  For instance, attachments on emails from suppliers can readily be automated to download to specific files in a matter of a couple of hours, saving precious time in the work day.

Even more hopefully, RPA can analyze data which procurement teams may not have the time or resources to do effectively.  By accessing data on inventory and sales, projections can be produced which keep procurement on point.

Forecasting trends.

Big data is your friend when it comes to interpreting trends in wages, pricing, supply and numerous other factors.  The price of things is the result of a complex of drivers which can be understood through the analytical application of what data tells us.

With RPA, this data becomes intelligible and thus, deployable.  Because of the impact on pricing by drivers like the rapid pace of technological change and global political realities, RPA can support procurement professionals by sorting key data and applying it to forecasting.  This is an important step forward, as it gives procurement operations a window into the immediate future.

RPA will also provide additional performance measures in terms of vendors, moving beyond yardsticks like delivery times and quality assurance.

Still in a rudimentary stage, RPA promises to revolutionize procurement and one of the most compelling ways it will do that is by offering professionals an enhanced ability to apply data to forecasting and performance measures.

The future of automation in procurement is bright.  At Centerpoint Group, we’re encouraged by these advances and see in them the next phase in the evolution of the sector.

Finding strength in numbers.

CenterPoint Group is a member-based procurement advisor, leveraging resources pooled from our members to reduce the costs of goods and services.

Everything from office and janitorial supplies, to vehicles, fuel and cell phones can be procured more cost-effectively with the power of numbers behind you.  We significantly reduce costs for a variety of operations by offering them the strength that being part of something bigger than one organization can offer.

When you’re ready to take your procurement process to the next level, you’re ready to find the strength in numbers CenterPoint brings you.  Discover a whole new way of holding the bottom line, with the support of a member-supported procurement process.

Contact us for a free analysis.

The post The Future of Automation In Procurement appeared first on Centerpoint.

source http://centerpointgroup.com/future-automation-procurement/

Designing the Right Procurement Strategy

Corporate procurement teams are challenged to consistently bring real savings.  Over the course of the fiscal year, they’re expected to maintain a high level of procurement expertise which not only saves money, but makes key stakeholders feel that their interests are being actively served.

But are procurement teams in a position to analyze their results over time, to ensure that they’re holding up their end of the infrastructure bargain?

A lot of that depends on strategy and deploying processes which inform all links in the chain, from shareholders to suppliers.  Designing the right procurement strategy is crucial to empowering procurement departments to do their best work by continually delivering the anticipated cost reductions.

The architecture of strategy.

If the overall corporate strategy is designed on a Five Year Plan structure, then why shouldn’t procurement be similarly designed?  Clear deliverables and expected outcomes all factor into how successful procurement can be.  Providing a framework for that, within a timeline, is key.

Functional strategies of the organizational whole should be deliberately lined up with procurement’s objectives to ensure that those strategies are working together and serving all stakeholders, as projected.

The ability of a corporate procurement department to self-monitor to ensure that it’s on course resides in available resources and systemic maturity.  These two factors create conditions whereby procurement is enabled to do its best work.

Regional or centralized?

If the organization follows a regional strategy, then so must procurement.  The same is true of a centralized strategy.  If the company is reaching markets with specific regional directives, then it’s imperative procurement follow that overarching lead, to ensure fidelity to it.

Similarly, a global strategy which is uniform, with no concessions to regional specifications, demands a global procurement approach.  Both strategies have their challenges and advantages, but the key is that procurement be synced with corporate strategy to be successful and to bear the fruit expected of it.

Designing the right procurement strategy has some defining elements which shift slightly in particular instances (like the need for regional supply).  One of the most important of these is the resources available to procurement.  When the department has all it needs to analyze markets and performance, it will deliver, but making those resources available is the foundation of making it all possible.

Centerpoint Group – the strength of numbers.

Corporate procurement departments which are successful are heavily supported by the institutions they’re working within.  When that kind of hands on support is lacking, or unavailable due to practical considerations, CenterPoint fills the procurement gap with the strength of numbers.

CenterPoint Group is a member-based procurement advisor which leverages the pooled resources of members to offer significant savings on a wide range of infrastructural needs, from vehicles, to fuel, to cell phones, to office supplies.  Because there’s strength in numbers, we bring our members exceptional discounts on needed services and supplies.

If you’re ready to take your procurement game to the next level of cost reduction, CenterPoint invites you to contact us for a free analysis.

Let us show you the strength of numbers.

The post Designing the Right Procurement Strategy appeared first on Centerpoint.

source http://centerpointgroup.com/designing-right-procurement-strategy/

The Future of Procurement Is Connected

In the last quarter century, procurement has come a long way.  More and more, businesses all over the world are coming to understand that procurement opens the door to lower costs for infrastructural demands.

With the ongoing development of the sector come challenges.  Not everyone’s open to the idea of attending to procurement collectively.  There are mavericks among who like to believe that going it alone is the best way forward.

At CenterPoint Group, our track record demonstrates that this isn’t the case.

But bringing new friends aboard presents a technological challenge that can be met with forwarding vision and the will to change the way we do things.  The future of procurement is connected and looming innovation promises to drive the sector into that connected future with positive momentum.

Big data analysis and the digital gift.

The digital world is a genuine gift to procurement.  Especially in terms of big data, digitization is allowing us to store vast storehouses of information for a very small capital outlay.

This allows us to analyze processes and functions within our enterprise frameworks to test how effective they are.  Regardless of where we are, the digital environment is changing the way we examine processes and allowing us 360˚ vision.

Everything we do can be monitored as it happens, from supply chain movement to warehouse capacity and everything in between.

Fighting fire with connectivity.

The advent of social media has presented procurement companies with a whole new challenge.  When things go wrong, these online channels are conduits for unflattering commentary from organized groups to unsatisfied customers.  The damage they’re capable of inflicting can be egregious.

But with analytic support and instantaneously transmitted information, it’s possible to head problems like these off at the pass, rapidly and effectively.  Points of contention anywhere in the system can be quickly identified and addressed.

With this advantage comes accountability and needed transparency that ensures a positive public profile.  When things go wrong, connectivity allows us to know where, who and how and to put out the fire proactively.

Envisioning key changes.

Connectivity is also a window on a changing market.  With volatility and changes like wage increases, procurement companies can stay in the loop in real time.  With access to information about market shifts available 24/7/365, companies like CenterPoint are able to pivot quickly toward more advantageous supply chains.

The future of procurements is connected because it’s in the digitized environment that the nimblest companies leapfrog those less willing to adapt.  By remaining in the vanguard, procurement entities are offered significant advantages by inviting technological change to support their operations.

CenterPoint Group – stronger together.

CenterPoint Group is a member-based procurement advisor which brings businesses access to material savings on a variety of infrastructural needs, from cell phones, to shipping, to office supplies.  By leveraging the pooled resources of our members, we create conditions for significant cost reductions.

The future of procurement is connectivity and that future is also in the strength found in numbers.  At CenterPoint, we believe that we’re stronger together.  Contact us for a free analysis.

The post The Future of Procurement Is Connected appeared first on Centerpoint.

source http://centerpointgroup.com/future-procurement-connected/

Where Will Procurement Be In 2018?

The key word we should all be keeping in mind, as we anticipate 2018 is “transformation”.  Procurement is set to evolve, compelled by overwhelming trends in the sector, like technological innovation, the imperative for enhanced risk management strategies and the management of relationships with suppliers.

Where will procurement be in 2018?   It will be evolving into a function which adds even greater value to the institutions it serves.  Here’s how you can manage the changes looming on the horizon.

Setting clear goals.

While it’s true that change is inevitable, it’s not a make work project.  Change should serve a clear purpose and be driven by its potential to improve the way you do things.

Look for specific changes that answer hopeful and constructive trends.  Risk management down the supply chain is one which demands your attention.  Technological change which facilitates clear communication and nimble response to supply-side difficulties is another.

Both these transformational projects bear in them the potential to render substantial fruit.  Be clear about why you’re pursuing the project, what it’s going to improve and the value it’s going to add to procurement’s function.

Communicating value.

By approaching change with an eye to sharing its goals with all stakeholders clearly, you’re offering a rationale for what you’re undertaking.  Everything concerning the project should be relayed, with continuous updates to all concerned.  Transformation is a good thing, but when the rationale for it is unclear, it’s difficult to obtain buy in from key people.

Pace yourself and don’t rush what you’re doing to prove a point.  Your people need time to adjust.  Support the process with clear communication that invites people to educate themselves about the value of the changes your proposing.  Ensure they understand that the changes proposed are positive.  Describe how everyone will benefit to smooth the transition to new ways of doing things.

Leadership.

Transformation makes demands of people.  Chances are, you’re looking at a staff that’s become complacent, because they’ve been doing things a certain way for a long time.

Shaking up that complacency can be uncomfortable.  It’s not your job to make it comfortable, as a leader.  It’s your job to make it clear to everyone on your procurement team that more will be expected of them and that it’s an opportunity for them to step up.

People who have become accustomed to the status quo may need the extra inducement of having key functions delegated to them.  The opportunity is a compliment, but it’s also their chance to shake off their complacency in favor of showing their mettle.

Leadership which drives transformation initiatives effectively strikes a balance between force-feeding the change to shake things up and investing the process with value by demanding a little more from people who are capable, but may have gotten stuck in outgoing processes.

CenterPoint Group – what you need, for less.

CenterPoint is a trusted procurement advisor which deploys pooled member sources to lower business costs on every day purchases.  By leveraging collective resources, we offer significant cost reductions.  Contact us for a free analysis.

The post Where Will Procurement Be In 2018? appeared first on Centerpoint.

source http://centerpointgroup.com/will-procurement-2018/

The 5 Trends Shaping Procurement In 2017 – Innovation Leads

Procurement is an evolving sector, constantly overcoming new challenges.  There are several key trends shaping procurement in 2017.  We think it’s important that procurement specialists keep their eye on them, to stay abreast of the accelerated pace of change being experienced in all sectors, including ours.

Following are our picks for the 5 trends shaping procurement in 2017.

1. Risk management.

Procurement agencies in the top tier of the sector are those leading this trend.  Their proactive approach to managing risk is part of the reason for their success and the fact that they’re returning enviable cost reductions and resulting profit margins.

These top-performing companies are introducing risk management strategies at every link in their supply chains, prompting others to follow suit.

2. Integrated Source-to-pay (S2P).

Connecting functions across organizations is another trend that’s being led by top-tier procurement entities.  By linking processes like contract management and invoicing (for example), the challenges faced by procurement professionals are reduced.   Connecting disparate functions creates greater efficiency in S2P by simplifying and integrating processes.

3. Centralized data.

It’s clear that one of the greatest challenges faced by procurement today is at the supplier level.  To maintain crucial intelligence on compliance, managing risk and evaluating performance, top procurement companies are centralizing data functions to streamline the flow of information, making it easier to digest and interpret, as well as more readily accessible.

4. Predictive analytics.

Under 20% of procurement entities are employing these, to date.  That number, however, is anticipated to increase to over 30% by 2019.

Allowing procurement to have a window into the immediate future, analytic examination of market trends, wage forecasts and other factors impacting cost in the procurement process is becoming one of the most important changes companies can make to improve performance.

5. Innovation

Innovation both within procurement organizations and down the supply chain is how the top-performing companies in the sector are facing the future, head on.  With the intelligent use of technology being a prime motivator, innovation comes second to profitability and cost reduction.  But innovation is a driver of improvement in those key areas.

Savings are a primary concern, but technology’s ability to inform and connect can provide the conditions to reduce costs, while also driving forward innovation in organizations.  Making them leaner and more efficient, technologically-driven innovation leads the 5 trends shaping procurement in 2017.

CenterPoint Group.

CenterPoint is a trusted procurement advisor, offering its members access to best-in-class pricing, significant cost reductions and seamless implementation.  By leveraging our pool of member resources, we’re able to bring you material savings on organizational needs from cell phones, to vehicles, to office supplies.

We provide the purchasing power of numbers, which is the power of a resource pool allowing CenterPoint to procure what you need for greatly reduced cost.

If your organization is ready to take your procurement process to the next level, contact us for a free analysis.  In the world of procurement, CenterPoint Group is a leader, changing the game for organizations with exceptional savings on their infrastructural needs.

The post The 5 Trends Shaping Procurement In 2017 – Innovation Leads appeared first on Centerpoint.

source http://centerpointgroup.com/5-trends-shaping-procurement-2017-innovation-leads/

3 Steps To a More Sustainable Supply Chain

Your supply chain is exposed to myriad problems, because of transparency issues, geography and variance in regulations in the jurisdictions they’re found in.

But as a procurement professional, knowing your supply chain is crucial.  Uncovering practices which can leave the company you represent exposed to protests and customer backlash is an imperative today.  With people becoming increasingly concerned about the way products and components are produced at source, it’s crucial that procurement is aware and proactive.

In this post, we’ll share 3 steps to a more sustainable supply chain.  These steps will support maintaining an ethical public profile for your business and protect it from exposure to damaging public relations liabilities.

1. Lifting the veil – auditing.

Regular audits of your supply chain will make much clearer what’s going on in every link.  While some may object to the complexity and resources involved in conducting them, both buyers and suppliers benefit from regular checks to assure that ethical labor practices and safe workplaces are upheld.

Audits open the lines of communication between you and your suppliers and provide a platform for key relationship-building.  You’re also providing a global service, when you educate suppliers about the importance of compliance on key measures of sustainability.

2. Consequences.

Suppliers need to understand that a failure to comply with audits, or a refusal to follow recommendations for reform, will result in loss of the contract.

There is always an alternative source for what you need.  Making that abundantly clear to non-complying suppliers is a motivator which works in both your favors.  You get what you need from a sustainable supply chain, or you make your supply chain more sustainable by working with your supplier toward reform.  Either way, you win and suppliers who are non-compliant learn that the market is not tolerant of certain unsustainable practices.

3. Work for change through direct support.

Of the 3 steps to a more sustainable supply chain, this is easily the most important.  Working for change by directly supporting the local communities your suppliers are found in is world-building work.  It helps your suppliers create better conditions and more environmentally-sustainable practices.  It also provides your business with a public relations tool.

Telling stakeholders what you’re doing to improve the sustainability of your supply chain makes you the “good guys”.  You’re taking a strong leadership role which reflects well on your business, supports communities in need of stronger regulations and supports families in supplier locations by creating more favorable conditions, across the board.

Education through the supply chain about sustainability and what it takes to get there is providing a public service that does your business profile good, building both public relations capital and a more sustainable world.

CenterPoint Group – trusted procurement advisors.

Built on three defining pillars – integrity, value and leadership, CenterPoint leverages the pooled resources of our members to bring them exceptional cost reductions on everyday purchases.

With 10 years as trusted procurement advisors, we offer outstanding value for money, freeing your resources for other priorities.  Contact us for a free analysis.

The post 3 Steps To a More Sustainable Supply Chain appeared first on Centerpoint.

source http://centerpointgroup.com/3-steps-sustainable-supply-chain/