Today we are pleased to welcome a guest post from Terri Hudson. Terri is the Managing Director of Baker Wanless. They are a UK based procurement consultancy who have been shortlisted for the ‘Best Business for Customer Service’ at the prestigious Croydon Business Excellence awards.
“Diminishing returns should be a natural result of the success of a procurement consultant”
Diminishing returns are the principle that the additional value gained progressively decreases with the increased input over a period of time. For example, if a client is paying inflated values for electronic components and they bring in a sourcing solutions specialist. The consultant may be able to gain a large savings value from a supplier as he gains an offer closer to the market value for a single year contract. However, in another year’s time when the specialists attempt to broker a deal for further savings with the renewal of the contract, the savings value may be perceived as lower. Because it would seem as less of a saving on their existing contract, unlike their contract from the year before.
However, the consultant might be winning a contract that presents the best possible value for money. In summary, it is important to note that savings should be perceived over a longer period of time and from the initially inflated value that the client was paying rather than just the percentage savings on the latest contract.
In the modern era of globalisation, the ability for suppliers to compete for business has increased. In terms of sourcing, if your client has numerous suppliers competing for their business, it increases the likelihood of getting a value that is closer to the market value. In some cases we would have invited up to 500 suppliers at the start of a tender, taking them through a detailed and thorough questionnaire and qualify only suitable suppliers to participate in a single tender. This would increase the chance of us finding the best value for the cheapest price and best quality.
At Baker Wanless, we offer global coverage for both our clients and suppliers with our team speaking additional languages including French, Spanish, German, Italian, Dutch and Polish to name a few. Ensuring that language is not a barrier to trading with our clients and that we taking advantage of this new stage of globalisation.
At Baker Wanless our services include:
– Developing Supplier lists – including client specific questionnaires
– Spend Analysis
– Category Management
– Managing eSourcing Events
– eSourcing Software Implementation, Support and Training
– Interim Procurement Support
We are able to draw on a team of consultants with a wealth of experience in procurement practice across all industries. Our managed database of suppliers stands at 16,000 entries the list continues to grow year on year is coupled with our strong relationships with suppliers in the sector enables us to gain value by increasing the competition for a product or service.
At Baker Wanless we use the eSourcing platform; Market Dojo. It’s an easy-to-use and affordable eSourcing solution that has a wide range of capabilities. The beauty of an eSourcing tool is that it allows users to maximise competition for a given product or service. This, in turn, generates values that are closer to the market level than might be gained otherwise.
Market Dojo helps procurement professionals negotiate better with our on-demand eSourcing tools. If you’d like to find out more, get in touch or register for free and play around with our software for yourself!
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