Purchases account for 15 % to 50 % of turnover of your organisation; they are a genuine source or savings that remains too often untapped, especially as indirect procurement is concerned.
75 % to 80 % of the potential savings on purchases are to be made at the customer’s and not at the supplier’s. This figure may seem surprising but, generally speaking, employees are only very rarely made aware and most of the organisations still don’t know very well their expenditure breakdown which can cover a broad spectrum of areas. See following examples:
- IT & telecommunication : telecommunication budget accounts, on average, for €800 to €1,000 per year and per employee.
- Business trips & travels : in France, business trips related expenditures account for almost €30 billion.
- Supplies : each employee consumes up to 85 kg paper per year!
- But also, Human Resources, Facility management, Utilities, Marketing & Communication, Transport & Logistics, Intellectual Services, etc.
Savings can be made mainly by purchase rationalisation on an internal level, by supplier sourcing, and action prioritisation on purchase categories with a significant impact on turnover. Identified potential savings are many and, mostly, prompt a genuine leverage effect on the margin.
KIMOCE allows the efficiency follow-up of your purchasing strategies within your organisation.
- Measure and analyse your results: analyse your suppliers, purchase expenditures, and the cost of your purchase process to build and adapt nimbly your purchasing strategy.
- Steer day to day: follow your key indicators daily through an interactive dashboard and handle the major events directly.
- Launch invitations to tender: put your supplier in a competitive situation and rationalise your supplier portfolio and the number of listed articles.
- Manage your purchases by category: identify the most important purchase categories, set cost reduction objectives and monitor the expenditures by purchase category.