Specialized Programs: In-office technologies such as smart devices, hardware, and software. Other ways a GPO can save money include the following: Companies can become members of a GPO to enjoy significant discounts relative to buying items individually and paying for the retail markup. Items categorized under indirect spend might be hardware, furniture, contracted labor, office supplies, and cleaning services. For example, an organization’s expenditures that are necessary for ongoing business operations but does not directly impact a company’s final output of products or services. When you talk about Group Purchasing Organizations (GPOs) for improving cost savings, the most strategic way this is done is through indirect spend. work with your buying group to develop a training manual and process workflow for suppliersĬontact GreewningTechnology to learn more about our supplier enablement services for Ariba guided buying.Leverage Group Purchasing Organizations for Your Business By michael Blog.train suppliers needing support to build out their catalog system.implement solutions for those suppliers that do not support punchout or hosted catalogs.determine which suppliers support level 1 and level 2 punchout catalogs.prioritize and identify suppliers eligible for guided buying.Suppliers very often have different concerns when there is an organizational change and how it will affect their business.
Laying out these benefits, selecting suppliers and disseminating this information can often been a challenge. Suppliers need to understand the benefits of guided buying and why it’s important to be part of the new technology.
Guided buying also follows all the existing rules for approvals and workflow so there is no concern about process change for the users.Īs your organization implements guided buying, one key point to discuss is suppliers. The business rules can be applied to walk a buyer though the process, while ensuring that the simplicity remains but the enforcement of business requirements and compliance is still in place. Guided buying offers the ability to give a user a single place for all their shopping. Many suppliers may not have the capability to support everything required to maximize your new guided buying. Suppliers need to embrace the concept as well. It can step the user through the guidelines set by your organization and reduce questions about process and increase user adoption.Ĭhoosing to implement guided buying within your organization is only half of the equation. Guided buying allows buyers even more visibility and simplicity in the procurement process. As an organization using Ariba you may be implementing Guided Buying.
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