In a slow economic recovery, several concerns weigh on the minds of CPOs. First is the need to control the cost of goods.
The second concern is risk management. CPOs are responsible for ensuring that purchasing agents follow the rules:
- Are they buying against contract?
- Are they buying from the correct suppliers?
- Are they buying the right quantities at the best price?
- Are items being shipped to the correct locations?
CPOs must maintain a system that enables them to drive compliance.
Another concern for CPOs is total cost of ownership:
- How many times does a supplier ship to their organization?
- Do they have a high rate of mistakes?
- Does the CPO have to replace suppliers often?
These concerns are less visible and more difficult to measure.
During a slow economic recovery, CPOs are challenged to do more work with fewer and perhaps less experienced people, so process automation is essential. The pressure to hire more affordable personnel necessitates a control platform to guide agents through the process of buying on contract. It must help them make important purchasing decisions.
- Is this item a necessity?
- Does it have to be a particular model?
- Must it be expensive?
- Are there suitable alternatives?
The Perfect Commerce procurement system offers process automation, ease of use, and global functionality—and it changes the way people think about spending. With mindful purchasing, total spend can decline by as much as 20 percent.