8 ways to create procurement value

6. Marketing co-operation

Any large company has significant marketing assets, for example, a website, social networks, regional offices or points of sale, even a fleet of vehicles. The key component here is the clientele that has been thoroughly studied and classified. Marketing assets can be offered to suppliers for advertising, brand promotion and targeted campaigns in exchange for revenue, discounts or similar assets to promote your own brand.

For example, having a large fleet, a company can conclude an agreement with an automaker to lease vehicles of its brand for a significant discount, as they will be part of the marketing programme. In the aviation industry, manufacturers are willing to pay airlines for the opportunity to serve their products (beverages, snacks and cosmetics) or branded napkins and cups to passengers. You can co-brand a small outsourced warehouse or sell the name of a metro station, stadium or aircraft - the possibilities of marketing co-operation are truly without limit.

7. Preferential buying

All over the world, there are programmes to support small private entrepreneurs, war veterans, local crafts, etc. This is a social obligation not only of the state, but also of large companies. You can factor preferences into tender evaluation, for example, by allocating 10% - 20% of the commercial rating to it. Thus, your company will realise its social responsibility while at the same time improving its public image.

Suppliers who are customers or marketing partners of your company, and who generate significant revenue, can also receive certain preferences. Certainly, your long-term strategic partners should enjoy some recognition in regular tenders - the main point here is that it is not based on a subjective assessment of an internal requestor, but clearly reflected in the tender evaluation.

8. Additional staff motivation

Procurement can provide additional tools to motivate staff. For example, corporate travel discounts on airline tickets and hotels can be extended to the private travel of company personnel and their families. Your suppliers can provide offers to your staff or even set up a temporary point of sale in your office.

In some companies, there are sections on the corporate website that contain special offers from suppliers and issue discount cards. A staff discount programme could be specified in employment contracts as one of the benefits offered to employees.

The above examples are meant to demonstrate that procurement can add value beyond traditional price negotiations. Revenue can be increased, the image of the company improved, relationships with suppliers strengthened and the brand promoted - all thanks to the comprehensive professionalism of buyers.

You can get in touch with Vaughan Zoutendyk on LinkedIn

Published by Smart Procurement World, a Division of Commerce Edge: Your Public and Private Sector Supply Chain Management Competence Delivery Partner