How Analytics Is Transforming Procurement Management for Facility Managers
8 MIN. READ
Data is the new oil. Companies spend loads of money in exchange for "good" data, and this coded information tells stories, exposes trends and opens doors to new opportunities. Savvy facility managers realize this and spend time and resources to capture it. Good data can transform a struggling facility into a successful one. Find out how, and take a look at how Raiven's (formerly Qmerit's) procurement management solutions will capture, analyze and use data for your company's benefit.
Many facilities fall into the habit of sourcing supplies from multiple suppliers. This causes inefficiency and confusion. After all, too many suppliers are hard to manage and can expose your business to risk.
And (we have all been there) chasing down suppliers for quotes and invoices or insurance information is a headache to say the least. This problem compounds when you are dealing with ten suppliers instead of two.
But why struggle to manage multiple suppliers when you do not have to? Procurement analytics can help you aggregate spend from several suppliers down to a few or even one. This information will make procurement management simple.
One point of contact. Less hassle. More efficiency.
Raiven's solution will take the struggle of managing multiple suppliers away and streamline information to free you up for other pressing issues.
Show me the money
Data will show where you spend money and what you purchase. Having this information will help you consolidate your spending and approve select suppliers. You will regain control and own your procurement process.
Data that follows the money and opens doors to where it is being wasted - that is invaluable. If you expose areas where tail spend exists and erratic purchases are made, data can help you get a handle on it. Use these metrics to your advantage and your NOI will improve.
Stop rogue spending and optimize procurement management
Rogue spending runs rampant in facilities. Employees buy items from unapproved sources like Amazon, forming bad habits and costing your company money.
Employees may have personal relationships with suppliers that may become problematic. They get used to the small gifts and lunches and may not realize this "innocent" behavior is outside of company policy.
Some employees even get greedy and use rogue spending in other ways. That pack of batteries or pens may not seem like a lot, but they add up.
To avoid this disaster, purchasing should be deliberate and precise, not random and unorganized. Analyzing spend data will highlight where to make changes, and implementing Raiven's software will make the changes simple and straightforward.
Raiven's browser extension squashes rogue spending by working with your team as they buy MRO supplies. This system works in the background as your teams search for items online, and it shows items with the best pricing and availability from approved sites - even if employees are searching on unapproved ones.
Utilizing purchasing data from Raiven will eliminate rogue spending, and it is easy to implement. Your teams will adapt to it quickly and will love the convenience.
Use analytics to negotiate better contracts and terms
Contracts not only protect your business from risk but they also ensure the best pricing and terms for your company. Correct data helps make this possible. A well-rounded procurement management system must include data to help you negotiate better contracts and terms.
If your data tells you that you have too many suppliers, remove some. Negotiating with fewer suppliers makes things simple. Raiven will assist with the RFP process to save you time.
Streamlining the RFP process brings significant benefits, like:
It will save you time and resources- No more messy paperwork or multiple trips to the site for walkthroughs. Using a digital platform with consolidated data enables easier dissemination.
Decisions will be made faster - Having data upfront will help you make decisions quickly. You will then be in a better position to negotiate contracts.
Transparency enhances- During the RFP process, real-time information is imperative. It equips decision-makers with the data they need to make intelligent choices.
In the end, embrace negotiation. Ask for free delivery. Reduce minimum buying commitments, and do not get locked into minimum purchasing requirements.
Sharpen your negotiation skills by allowing your procurement management system to work for you. Having the best pricing and terms from suppliers will make a difference in your bottom line.
Data and Raiven saves the day
In today's technology era, good data wins, every time. Fortunately, Raiven's tools can help you mine this precious resource and use it to help boost your company's NOI. As a smart facility manager, this is where you shine, implementing processes and systems that automate, optimize and, most importantly, save money.
Raiven's complete procurement management system uses data to help you compete at a high level and save money. Reach out today for more information on how you can drive lower operating costs with our solutions.