H O M E

Purchasing is usually considered as the most important Supply Chain Management function. Although Purchasing has this status within organizations it is often "busy" acting on a backlog of requests for material and expediting existing orders. This often requires a lot of "horsepower" to support. Staff costs are likely your largest expense and using these resources strategically is of prime consideration. The following strategic approaches can maximize your Purchasing resources and Velocity is well experienced implementing and using these methods.

• Velocity can work with you and your peer company's to form a cooperative buying group. On your own you may not be able to negotiate the best buying terms but as part of a larger group the combined buying leverage will attract deeper discounting and lower purchasing costs. This topic is covered in more detail within the Co-op Buying link.
• Velocity can reduce your purchasing costs. Velocity can have your buying process paperless within days (depending upon the size and location of your organization) by using web-enabled Excel tools and a file structure that is simple and very effective to use. Beyond reducing your hidden costs Velocity can have your staff trained in the use of these tools within hours (generally anyone familiar with Excel will be fully trained within 1.5 hours or less).
• E-purchasing as a business to business (B2B) process has matured to a point where a majority of suppliers promote this cost-effective approach. E purchasing is not just the "flavor of the month" in fact it is growing daily and fast becoming the preferred method of buying/selling. Velocity has worked with suppliers who have provided this solution. There are no mysteries here, provided you keep the process uncomplicated. It is likely that if you are not using B2B solutions with a supplier that is working with customers in this fashion your direct and indirect costs will be higher than your competition. B2B business transactions reduce the cost of doing business for the supplier, for this reason a supplier will commonly reward customers using B2B solutions with better prices and terms.

Having negotiated numerous single source supply contracts, Ric can offer his experience and "hands-on" energy to obtain the benefits that this strategic and "lean" buying approach offers. As an example: within the last two years Ric was able to provide his employer a $650,000. direct cost reduction on annual purchases worth $5.5 million.