Opting for an Excellent Repricer Software
It was discovered in a recent business process assessment for a client’s Procurement function that in order to save costs, we should “reprice” purchase requisitions. Simply double-checking a requisition pricing of goods and/or services against the vendor’s current pricing or other reliable data source to optimize the specific item’s cost is called repricing and as a person who lives in the modern world where technology has made a lot of improvements, an excellent repricer software would be a good choice for you. A savings of $82,000 within for months was confirmed by our client who implanted our repricing recommendations and that could be a great sign. Read more of our repricing recommendations in this site.
The Step by Step Approach
A four to six week business process assessment which focuses on a business function like Procurement that seeks new business insights and quantifiable benefits to fully maximize technology investments. This process assessment looks for high impact opportunities to realize “real” savings from better processes rather than just looking for places to plug in new software.
The Actual Coverage
Our client wanted to process the purchase requisitions into purchase orders. The lack of the ability to easily review and consolidate similar requisitions to drive low pricing in their purchasing software is the problem which, for some, have nothing to worry about. The buyers did have a goal of repricing three requisitions per buyer per week to ensure they were getting the best pricing available. We have discovered and planned that for about 60% of the transactions processed, they have saved a few hundred dollars per repriced requisition.
Think of Additional Recommendations
Increasing the number of weekly repricings from three to ten per buyer is what most business experts would have recommended.
We suggests that in order to free up capacity for the increased repricing efforts, they should eliminate specific manual processes and redundant work so that there will be a development for a very long time. We also recommended to set a baseline to measure future performance and communicate repricing results and cost savings back to requisition originators to encourage better initial pricing while not taking for granted other aspects.
Significant Things About this choice
Six repricings per buyer per week were made instead of the recommended ten after the client reviewed the suggested repricing goal recommendations. A net savings of $82,500 which roughly tallies to $250,000 savings per year were confirmed over the first four months and that’s a great thing.
Out of those recommendations, a potential savings of about $3 million per year was represented in the top five measured by the dollar impact so try to check it out.