Procurement mistakes most companies make

Procurement mistakes most companies make

By 

Harrison Soegiarto

Food & Beverage Enthusiast

Published 

March 1, 2022

Procurement mistakes most companies make
In recent years, having an efficient procurement process changed the game for many companies. The brains behind these methods that make such an efficient procurement process are professionals that utilize the most up-to-date technology to their advantage. However, improvements often come from years of mistakes and inefficient practices.

Common Mistakes

  1. Consolidating your supplier lists: In a perfect world, things stay according to plan when you sign a new supplier into your company. However, we all know too well that isn't the case. Price changes, unexpected lead times and even discontinuing partnerships can occur at any time. Therefore it is important to keep track of these changes for each supplier. For larger corporations, this will be tough to do without smart technology.
  2. Educating your team: To get something done right, you need a competent team to execute your plans. Most of us, though, can only dedicate a limited amount of time and resources to find, train and reimburse mistakes made by employees. Even the most experienced professionals can make mistakes that could cost your business thousands of dollars. 
  3. Lack of supplier due diligence: Often we forget to do our homework thoroughly and skip the most important step of considering a supplier. It takes a great deal of time to set up meetings with individual suppliers, let alone know their ins and outs. Most businesses get surprised by suppliers that fail to meet certain delivery dates, misperception of a supplier’s capability or may even get cheated on. 
  4. Ineffective SOP for your procurement process: With many factors affecting your purchasing process, it’s tough to narrow everything down into one standard operating procedure (SOP). Changes happen everyday and your SOP may not be the best practice anymore. Most companies do not have the experience or expertise to make those in-the-moment decisions when things get out of hand. 
  5. Complicated onboarding process: Onboarding can be tough for both you and your supplier if you don't have a component process. It wastes time and money if you need to wait for paperwork or background checks.

Reeco exists to prevent these mistakes

Although there are certainly other mistakes companies make in their procurement process, solving these issues effectively will alleviate a large percentage of costs. That’s why we invested so much time and energy into creating solutions for you!

  1. Using AI and data analytics: We utilized modern technology to make it easier to find the right supplier according to your needs. Reeco ensures that suppliers operating in our platform are credible and reliable. Making deals with such partners go a long way when you eliminate doubts in your head on whether they will deliver or not. You no longer have to worry about having the right expertise in your team to find the right supplier for you. We have a dedicated team that scouts for qualified vendors so that all you have to do is choose. 
  2. You deal with us, and we’ll do the rest: Reeco simplified your purchasing process by only dealing with us on our platform. No need to go out of your way to find suppliers that fit your needs. We have the talent and technology to do that for you. Plus, if anything goes wrong, we have a 24/7 success team waiting to help!
  3. 1 Contract, 1 invoice: Consolidating your supplier invoices into one platform saves you so much time! It’s tough enough to keep track of internal operations. Why not invest in an advanced, smart platform that can do the work for you and simplify your supplier management process.

If you are experiencing some of these issues with your company, we know our solutions can seem like a fairytale. The truth is, we exist to simplify so that you can thrive. Check us out to make that fairytale your reality! 

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