Reducing your supplier base from many to one
A company can spend more than 60% of its revenue on buying goods and services, so even a modest reduction in purchasing costs can have a significant effect on profit. Bell procurement management services provides a low cost, flexible, innovative and creative way to offer a single supplier model that delivers value and cost savings across all IT infrastructure and associated services. We do it all for less than the cost of managing a credit card.
The Challenge
C-level executives as well as procurement managers and teams in large companies are increasingly looking for ways to reduce cost and complexity when purchasing low value run-rate items, hardware, or software for their organisations. In companies with strong procurement category management system, managed spend tends to be around 80% of all expenditures, leaving long tail spend at 20%. Often this will be the result of ad-hoc purchases from multiple suppliers, low-value transactions with one-time vendor non-purchase order spend. Not having a tail spend management in place inevitably leads to increased costs and less control over the procurement process.
Trying to negotiate and trade with a large volume of vendors, across multiple geographies can be both complex and time consuming. The majority of suppliers demand 30-day payment terms which can be challenging and restrictive. Businesses are now looking for a low cost model that provides value and predictability. They need the flexibility of more generous payment terms and a service that’s measured through SLA to ensure consistently high standards and savings measured against targets to reduce the supplier base from many to one.
The Solution
Bell Integration acts as an extension to the client’s Procurement team executing the end to end sourcing process, supplier onboarding and management of contracts for in scope spend. Tail and tactical spend is typically inefficient to manage, our centre of excellence processes this spend with incredible efficiency through category expertise, tailored processes, and tail specific technology. This means maximum value is extracted from the contracts as well as operational and risk mitigation benefits. We have global footprint and service some of the largest organisations in the world.
