When Did Procurement Get So Complicated?
By: Grainger Editorial Staff
Are you scratching your head when looking at your inventory? Do you not even want to step foot in your warehouse? Does an organized inventory and easier ordering process seem beyond your wildest dreams? It doesn’t have to.
You know ordering products involves many steps: Identifying the item you need, searching for the item, finding out you need more of that item, filling out a requisition, getting it approved, placing the order, receiving the products and putting them away. When you go through these steps with multiple suppliers, not only are you spending more time on each of these steps, you are also spending more money—typically about $75 per transaction.1 So when you work with multiple suppliers, your employees are going through all the above steps possibly 2, 3, 4 or more times. Do you have the time or money to spend on that?
Consolidate and Simplify:
1. Make Ordering Easy:
With so many suppliers to manage, you have multiple P.O.s that may contain the same products with different pricing. Not to mention that each supplier most likely has a different way for you to order these products. Due to the variety of steps in the procurement process, consolidating suppliers is a sure-fire way to help save you time and money.
2. Find the Right Product:
What happens when you have product in various locations in your inventory? This can happen when you order from more than one supplier, sometimes even with products that come from the same supplier. Up to 22% of the time, maintenance employees leave a stockroom without the proper material or quantity.1 How do your employees know what products are supposed to be in a given location, or if the product they are picking is the right one? By consolidating orders to one supplier, you can more effectively manage your inventory by making sure the same products are in one location—helping your employees find what they need, the first time and every time.
3. Replenish What’s Out of Stock:
Replenishing inventory may involve up to 30 steps, five people, five hand-offs and one approval.1 If products are inventoried in multiple locations, your employees are spending a lot of time putting inventory away, not to mention the space being allocated to inventory this product in multiple locations. Then there’s the issue of ordering more product than you need—60% of on-hand MRO inventory levels exceed a one-year supply.1 Now you may have wasted the triple threat: Time, money and space. Consolidating suppliers can help.
It’s no secret that ordering, finding, tracking and replenishing products, takes time, costs money and uses a lot of space. Having multiple suppliers just compounds the confusion, so finding a way to consolidate and simplify each step of the procurement process, including managing the inventory within your facility, should be a priority. Think about how much smoother your day would go if you could procure product from one supplier and they could help you organize your inventory.
Learn more about the many inventory management options available to meet your needs here.
1Grainger Consulting Services
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