Many people use the terms “procurement” and “purchasing” interchangeably. Despite their similarities, they do have different meanings. One focuses on transactional functions, while the other focuses on the strategic process of supplier and product sourcing, compliance, and risk mitigation.
Procurement typically concentrates on the top 30% of transactional spend of any given organisation. Generally, this represents from 70% to 80% of the total spend for that segment.
The administrative costs to deliver a tender are generally accepted at approx. $15,000. The cost to contract manage an agreement range between 5 to 10% of that per year.
Delivering value to the membership includes:
Risk mitigation: CCI through its suite of bespoke Supplier Agreements, Quality Standards, Due Diligence, Specifications and tight Contract Management means that we consistently have our “finger on the pulse” and are constantly engaged with suppliers to deliver our membership piece of mind, including recourse should any unfortunate event occurs.
Insurances: up to date and verifiable: Insurance is only one element of an overarching risk management strategy. It does not remove the liability of a Supplier/Contractor for their actions but instead provides financial protection for the membership as insured, in the event of an insurable loss or liability.
Compliances: providing ease of access to documentation and suppliers that meet eg. Australian standards; industry best practice; state and federal legislation; HACCP certificates; Listeria monitoring; industry guidelines; training requirements; return to work compliance, licences, suppliers staff qualifications, monitoring and checking of plant and equipment etc.
Compelling Pricing: CCI aggregates spend for the benefit of its Members. Our supplier offerings stack up very favourably against our competitors including many government contracts.
Expertise in mediating between Members and Suppliers: recently a member was having an uncomfortable time with supply issues. On examination it was found that the member was also experiencing significant staff turnover, compounding the problem. CCI met with the Supplier and the Member, discussed the issues and looked for a better service model. The Supplier suggested they implement a “managed supply service” where the supplier would take over ordering and stock management. The outcome was the member now has virtually zero supply issues and staff can concentrate on administering care.
To find out more, please engage with either a CCI Business Development Manager or myself. We’re here to help.
0418 773 858