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/