Supply Chain Archives | DMT Solutions

How Procurement Outsourcing Can Ease Financial Pressure

26 February 2024

by DMT Solutions Business Finance Procurement Supply Chain

Procurement outsourcing is rapidly gaining traction as a strategic solution for businesses of all sizes.

Today’s competitive business environment has changed from promotional strategies, marketing channels, and pricing methods, to how organisations adjust their strategies to compete effectively using procurement outsourcing as a strategic tool for Chief Procurement Officers (CPOs), business owners, and finance directors to alleviate pressure, optimise costs, and empower their organisations to thrive.

This blog delves into the benefits, considerations, and steps involved in leveraging procurement outsourcing to ease pressure in-house. Whether you’re feeling the strain of managing a demanding procurement process or seeking to enhance efficiency and effectiveness, this guide will equip you with the knowledge to make informed decisions for your organisation.

Is your business feeling the weight of a demanding procurement process?

You’re not alone. Supply chain issues, one global political crisis after another, rising interest rates, global inflation, and employing the right talent and skillset meant 90% of businesses raised their prices by 10% or more last year.

Whether you’re a procurement department head, a business owner, or a finance director, the pressure to optimise costs, ensure efficiency, and manage supplier relationships can be immense.

In 2024, procurement outsourcing is emerging as a strategic solution to alleviate these pressures and empower your organisation to thrive.

What is Procurement Outsourcing?

Procurement outsourcing involves partnering with a third-party provider such as DMT Solutions to manage specific aspects of your sourcing and supplier management functions.

Allowing your internal team to focus on core competencies, while the outsourced partner leverages its expertise and resources to deliver the following benefits:

Reduced Costs: Procurement service providers often benefit from economies of scale, allowing them to negotiate better rates of up to 75% with suppliers and potentially reduce their overall procurement spend. Additionally, you can save on overhead costs associated with hiring, training, and managing an in-house procurement team.
Enhanced Expertise: Access a team of seasoned procurement professionals. With more than 20 years of specialised knowledge in strategic sourcing, negotiation, and supply chain management. Our expertise can help you make informed purchasing decisions, optimise contracts, and identify cost-saving opportunities.
Improved Efficiency: Procurement service providers utilise best practices and cutting-edge technology to streamline the procurement process. Our services are designed to significantly reduce administrative burdens and free up your team’s time to focus on strategic initiatives.
Strengthened Supplier Relationships: Leverage our established supplier network and relationship management expertise to secure better deals and ensure reliable, high-quality products and services.
Increased Agility: As your business needs evolve, a flexible outsourcing arrangement allows you to scale your procurement resources up or down as required, ensuring you remain adaptable and responsive to market changes.

Is Procurement Outsourcing Right for You?

While procurement outsourcing offers numerous benefits, it’s crucial to assess your organisation’s specific needs and circumstances carefully. Consider the following factors:

The complexity of your procurement needs: If you deal with a high volume of diverse purchases, outsourcing can be particularly beneficial.
Size and capabilities of your in-house team: If your team lacks the expertise or resources to handle your procurement workload effectively, outsourcing can be a valuable solution.
Strategic goals of your organisation: If your focus is on cost savings, efficiency, or supplier management improvement, outsourcing can support these goals.

We cover 15 core business activities including:

Taking the Next Step

If you’re considering procurement outsourcing, we must conduct thorough research on your business costs. Our proven track record, industry expertise, and a clear understanding of your requirements will benchmark your current costs and tender for the best value in pricing, service levels and value for money.

By carefully evaluating your needs and exploring the potential benefits, procurement outsourcing can be a powerful tool for easing pressure, optimising costs, and driving growth within your organisation.

How our process works

Our streamlined process is designed to make life easy.

Simply provide 3 months of existing contracts or your requirements and we’ll handle the rest.

Review

A short call to review your circumstances

Alternatives

We find the best alternative suppliers for you

Impartial

Impartial recommendations and full support

Increase Your Business Profitability: A Step-by-Step Guide

14 February 2024

by DMT Solutions Business Cost Reduction Supply Chain

Business profitability is always at the back of any business owner’s mind.

Every business can improve its profitability. While sometimes a single factor can make a big difference, for most, it’s a steady stream of small improvements that truly lead to success.

This guide will equip you with actionable strategies to increase your profit margins, identify areas for improvement, reduce costs, drive sustainable growth, and implement effective strategies that lead to business profitability.

Boost your bottom line with these actionable strategies.

1. Analyse Your Current State:

Track Key Performance Indicators (KPIs): Identify metrics like sales, costs, and profit margins to measure progress and pinpoint areas needing attention.
Review Costs: Analyse your expenses, including overheads, materials, and labour, to identify potential areas for savings.
Assess Efficiency: Measure how effectively resources are used to identify bottlenecks and areas for improvement.

2. Implement Cost-Saving Measures:

Negotiate with Suppliers: Leverage your buying power to secure better deals on materials and services.
Reduce Waste: Eliminate unnecessary spending in areas like energy, supplies, and inventory.
Optimise Processes: Streamline workflows and eliminate inefficiencies to improve productivity and reduce costs.

Business Profitability - The ability of a business to generate profits from its activities

3. Enhance Revenue Generation:

Review Pricing: Analyse your pricing strategy and consider adjustments to reflect market value and customer demand.
Upsell and Cross-Sell: Offer existing customers additional products or services to increase their average transaction value.
Tap into New Markets: Explore expanding your reach to new customer segments or geographic areas.
Develop New Products or Services: Innovate to meet evolving customer needs and create new revenue streams.

4. Invest in Your People:

Train and Develop Employees: Equip your team with the skills and knowledge to work more efficiently and effectively.
Boost Employee Engagement: Foster a positive work environment to motivate and retain top talent.
Offer Incentives: Reward employees for exceeding targets and contributing to profitability improvement.

5. Leverage Technology:

Automate Tasks: Utilise technology to streamline manual processes and free up employee time for higher-value activities.
Improve Data Analysis: Gain insights from data to make informed decisions and optimise operations.
Implement Digital Marketing: Utilise online channels to reach new customers and drive targeted sales.

Remember:

Start small and scale: Choose a few key areas to focus on initially and gradually expand your efforts.
Continuously monitor and adapt: Track progress, measure results, and adjust your strategies as needed.
Seek expert advice: Consider collaborating with consultants or industry professionals for guidance.

By implementing these steps and adopting a data-driven approach, you can unlock the full potential of your business and achieve sustainable profitability.

Bonus

Checklist for Improving Business Profitability

Red Sea Attacks: Securing Your Supply Chain To Avoid Disruption

17 January 2024

by DMT Solutions Procurement Supply Chain

Executive Alert:

The escalating situation in the Red Sea poses a serious threat to your supply chain and bottom line.

Recent attacks have disrupted critical shipping lanes, leading to:

Soaring Costs: Container costs have already skyrocketed by 250% for some businesses, potentially translating into hundreds of thousands of pounds in losses.
Crippled Deliveries: Delays of 10-14 days due to the Cape of Good Hope detour jeopardise crucial sales seasons like Valentine’s and Mother’s Day, impacting revenue and customer satisfaction.
Unpredictable Future: The volatile situation casts a shadow over the future of this vital trade route, bringing uncertainty and potential cost fluctuations.

Don’t Wait, Act Now:

Stress Test Your Supply Chain: Conduct a comprehensive analysis to identify vulnerabilities and assess potential risks. DMT Solutions offers a complimentary cost audit to help you optimise your supply chain and reduce overheads by up to 75%.
Embrace Diversification: Explore alternative shipping routes and diversify your supplier base to mitigate dependence on the Red Sea and ensure product availability.
Proactive Pricing: Anticipate cost increases and factor them into pricing strategies to maintain profitability and customer trust.
Open Communication: Keep stakeholders informed about potential delays and price adjustments. Transparency builds trust and minimises disruptions.

The Red Sea attacks are not a temporary inconvenience; it’s a call to action.

The Red Sea attacks highlight the fragility of global trade and the need for proactive measures.

By taking immediate steps, you can navigate this storm, secure your supply chain, and protect your business from costly disruptions.

DMT Solutions is here to help.

Our experienced team can assist you in stress-testing your supply chain, identifying cost-saving opportunities, and implementing resilient solutions.

Remember, proactive action is your best defence. Adapt, diversify, and communicate to weather this storm and emerge stronger.

Together, let’s build a more resilient and prosperous future for your business.

Additional Resources:

British Retail Consortium: https://www.brc.org.uk/
International Chamber of Shipping: https://www.ics-shipping.org/
Mediterranean Shipping Company: https://www.msc.com/en
Maersk: https://www.maersk.com/

Contact DMT Solutions today for your free cost-audit and start securing your supply chain.

Changing business energy suppliers – The benefits

3 May 2022

by DMT Solutions Business Business Energy Cost Reduction Finance Procurement Supply Chain

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Changing business energy suppliers is not often at the top of to-do lists. However, business energy costs are overheads all businesses can do with reducing.

Companies quickly have to adapt to the changing business environment in the current economic climate by keeping business costs down.

The price of natural gas and electricity for businesses has never been higher. Over the last few years, energy prices have been increasing month on month, yet it is still a cost that many companies fail to budget for.

The cost of heating and lighting is one of the main costs for business expenditure. For example, suppose you have a business that needs to refrigerate, freeze or cook inventory, then you have to budget for the storage and handling of stock from delivery to being sold.

One of the main factors driving the business energy market is the increasing concern for environmental responsibility. As a result, companies that have previously focused on market share have shifted to sustainability as a core value proposition.

There are many advantages to changing business energy suppliers; these include:

Reduce your bills

Could you be paying less on your electricity and gas bills? Unfortunately, many businesses are paying more than they have to, and with everyday living costs on the rise, we all need to find ways to save. Our huge buying power will get your company the best possible energy prices, and we will help you make the switch.

Make a change for the better

Maybe you are changing your business address, expanding to a new location or your current energy plan is about to end. But, on the other hand, perhaps you have just grown out of your existing business energy plan and need to find another provider that meets your new energy needs. These transition times are the perfect opportunity to review your options, find a better deal and switch to cheaper electricity and gas suppliers.

Discover greener options

Many energy utility providers are now offering more renewable and sustainable energy options, such as carbon offset, hydro, solar, wind and biomass. If you would like to reduce your impact on the environment, we can help you find a cleaner, green energy plan that will still save your home and business money in the long term.

Experts by your side

Our utility procurement specialists are constantly reviewing the gas and electricity marketplace to ensure they can secure the very best deal for your business.

Given the significant supply risks and price volatility in the market, the need for specialist support is all the more critical.

When utility prices drop, your business will be privileged to have energy specialists on your side, working for you to ensure that you enjoy price reductions as soon as possible.

Switching energy is as easy as turning on a light switch. Then, as you continue to use the same pipes, gas, meter and safety – you do not lose supply – the only difference is the price you pay and you experience better customer service.

Bundle and save

Combining your electricity and gas plans is a great way to save cash and streamline your accounts. Our business energy providers can customise a bundle deal that meets all of your energy needs.

Improve your service

You do not have to pay high prices for average service. However, if you are not happy with the service you are getting with your current energy provider, you can move on and find something better. Typically, 97% of our customers move to a cheaper plan.

It does not cost you a thing

Our business energy solution is an entirely free service. There are no hidden costs, catches or obligations. We are here to find you the best energy deal possible from our panel of leading energy retailers based on your preferences.

Should I switch to a new energy supplier?

If you’re interested in switching your business to a renewable energy provider or are interested in any of our energy procurement services, you can contact us today.

You can either contact us via our form or alternatively you can call us on 07942 748189 to discuss your needs in more detail today.