“Similarly to consumers, there are people who will look up items online, see a ‘too good to be true’ price and not consider the possibility that it’s counterfeit,” she adds. “The only way to avoid this is to work with trusted, pre-qualified suppliers that can prove the quality of everything they sell.”
Communication is key
So how do you get the message through to users that approved suppliers are a better choice? First, says Graham, the procurement team needs to communicate with users to understand what sort of products they need and to ensure that the approved suppliers they sign contracts with stock all the parts that are needed. “It’s not uncommon for me to go in and have meetings with groups of senior engineers at this stage to discuss which products they need and to reassure them that RS will be able to provide what they need,” he adds.
The next step is to make switching to approved suppliers as smooth as possible. “Through the use of integrated eProcurement systems like the one RS has, it’s possible to make the ordering process really easy,” Graham explains. “By streamlining ordering through technology, it is much more likely that the user will be willing to change their habits.”
The other area where efficiencies can be made is through releasing working capital from items held in storage. “A number of companies in the OEM sector will have huge storerooms full of products that are purchased in bulk and stored for when they are required,” says Graham. “It’s important to realise that with a contracted supplier such as RS, you can simply order these items as and when you need them and hold the minimum of stock on site. This frees up working capital and space in your premise.”
Choosing a vendor-managed inventory service such as RS ScanStock® can make this process even easier and more efficient. “With ScanStock, our team does everything. We visit to check stock and reorder and then also replenish the stock,” says Graham. “It cuts the time and cost of managing low value, fast-moving Industrial supplies. In turn, this helps you to be more productive, letting your team get on with their job.”
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