In the face of what appears to be an overwhelming consensus of opinion that we are in for a tough year economically, it’s always worth bearing in mind that leaner pickings tend to favour fitter businesses and as such a ‘slowdown’ – whilst curtailing overall market growth – offers no end of opportunities to pick up market share for those businesses fit and able to weather a storm.
It also means broadening the focus of the business. Too many companies have an all-consuming thirst for profit growth through sales that ignores other, often much more accessible, ways to drive up the bottom line. That can all change in a tightening market and it’s when technologies and techniques such as electronic sourcing and eProcurement really come into their own.
After all, cutting costs – both directly through lowering the price of bought-in goods and services and through process efficiencies – delivers an increase to the profit line in direct relation to the savings made. And since, both in our experience and according to the latest Aberdeen Report, ”enterprises that adopt eProcurement reduce their requisition-to-order cost by approximately 48%, and negotiate, on average, a 4.75% incremental discount with suppliers”, there is plenty there for the taking.
So Happy New Year and best wishes for a prosperous 2008!
