7 Step Procurement System - Procur Global

7. Inventory Management

6. Implementation

5. Supplier Selection

4. Negotiations

3. Request For Bid

2. Supplier Research

1. Opportunity Assessment

From leveraging our network of clients and suppliers to the unique system that we use to purchase goods and services, Procur Global Sourcing implements and succeeds in reducing net cash costs for our partners.

NET COST REDUCTION

TIME & EFFORT

Inventory Purchasing Strategy

Bid Package

Partnering

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Opportunity Assessment

Once our client agrees for Procur to purchase goods and services on their behalf, we take a detailed approach to conducting analysis of the client’s 12–24-month Op Ex and Cap Ex budgets. This process allows for us to conclude the areas in which we believe value can be delivered through our procurement program. Usually, our client has sourced an initial quote on the goods or service they look to procure. We take this as our benchmark price that we must beat to be successful.

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Supplier Research

After we assess the purchasing opportunity and have a real purchase request in hand to source, our team does its due diligence on potential suppliers. Whether this is suppliers that are already in our supply chain network or new potential suitors, Procur’s supply chain team analyzes multiple factors in which we believe will determine having the most advantageous effect on the bottom line for our clients including quality, location, etc.

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Request For Bid

The supplier selection is narrowed to around 10-20 potential vendors before we send out our bid package. These bid packages include the client’s original spec and quantities in which we repackage into a very detailed RFB that is sent out to each potential vendor. These RFBs may include other buys from other clients as our aggregate efforts will push pricing down. The vendors will then return to us with their initial quotes for the proposed goods or services. Procur usually addresses these buys in 12–24-month timelines.

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Negotiations

As we receive the initial quotations, the ability to cut 50%+ of the vendors becomes apparent from their pricing models. As we come down to our final potential vendors based off of all of the information gathered, we then bring in our professional negotiators. This process takes about 1-2 weeks in which we do everything possible to determine the best possible pricing for the best possible product or service being sourced.

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Supplier Selection

Once it is determined which vendor has given us the best opportunity to guarantee a reduction in our client’s cost, our team comes together to discuss given the final award to that vendor. This discussion allows for all of our team members to give their input regarding why they believe which vendor is the most suitable for our client. Once this meeting is concluded we send out our award of contract to the vendor selected.

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Implementation

At this point we go back to the original client and present all of the information that we have concluded. This information includes the new vendor that they will be purchasing from and the new pricing that we have negotiated for. The specification that our client originally gave is matched 100%. This includes shipping, quality, delivery, etc. This allows for our clients to strictly look at the realized savings that our program creates. Procur then steps out of the process of further delivery schedules, etc. between the client and new vendor.

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Inventory Management

If our client decides that they would like to pay for our fee in their own inventories or services, we generate an account in which we show a credit due to Procur in the future. We have no wish to physically hold onto inventory until we have found new channels to move it outside of the client’s network. Once we have found a suitable buyer for the inventory and get acceptance from the client, we use this credit to move the inventory to that buyer and debit the account accordingly. Most clients that use this method have high margins that allow them to benefit from this unique method.

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