The last few years have been a challenge for all businesses here in the UK and delivering intelligent procurement solutions has come to the fore.
In the past three years, inflation has significantly impacted SME businesses in the UK. The uncertain environment has created new challenges (unseen pre Covid), including;
Consumer Spending Decline: High inflation has led to a sharp drop in consumer spending. The British Retail Consortium (BRC) reported a third successive drop in retail activity as consumers tightened their belts due to soaring inflation
Rising Costs: In October 2022, UK inflation reached a 41-year high of 11.1% and it still remains above pre pandemic levels. Businesses faced skyrocketing production costs, forcing many to rely on price hikes just to stay afloat. SMEs face rising expenses for raw materials, utilities, and other essential inputs.
Reduced Purchasing Power: As prices rise due to inflation, SMEs’ purchasing power diminishes. Businesses have found it challenging to maintain the same level of procurement within their existing budgets and don’t have the budget or time for extra internal procurement resource to bed in.
Decreased Profits: Higher costs without corresponding revenue growth squeeze profit margins. We have seen companies struggle to maintain profitability.
Reduced Access to Credit: Inflation affects interest rates and credit availability. Investors have slowed down their activity in response to market uncertainty
Increased Uncertainty: Inflation introduces volatility and uncertainty into business planning. All businesses have had adapt swiftly to changing economic conditions.
Intelligent Procurement Service Delivery
Our Virtual Procurement service has helped many UK businesses to mitigate these areas of concern by focussing on their indirect procurement. This has freed up our clients time and resources to focus on their core business proposition and reinvest the savings where they can fund growth.
We continue to work with businesses through our Virtual Procurement service to deliver intelligent procurement solutions and an average ROI of 5:1 through;
Cost Savings: Indirect procurement accounts for a significant portion of a company’s expenses. By streamlining the procurement process, SMEs can identify opportunities for cost reduction. Consolidating suppliers and negotiating better terms can lead to substantial savings and improve the bottom line.
Increased Efficiency: Indirect procurement can be complex and time-consuming, involving multiple stakeholders and departments. Implementing an efficient procurement process frees up resources and allows employees to focus on critical tasks.
Quality Enhancement: Choosing high-quality vendors and suppliers ensures that the products and services procured are also of high quality. This indirectly impacts customer satisfaction and overall business success.
Compliance and Risk Mitigation: Improving indirect procurement processes helps SMEs ensure compliance with regulations and mitigate risks. By managing suppliers effectively, businesses reduce the chances of legal or operational issues.
If your business could benefit from renewed focus across indirect procurement now is the time to reach out. Providing a cost effective, agile expert service, Virtual Procurement will deliver blue chip procurement skills to your business.
About Ebit
Here at EbitIP we are experts in the field of indirect procurement, delivering intelligent solutions – not just reports!. Providing benchmarked and proven savings across multiple categories for many clients we have a track record of innovation and excellence. You can review our case studies here.
