Thursday, January 1, 2015
How SME's (small and medium enterprises) are driving procurement cost down!
As 'stand-alone-businesses', the core strength of a SME is its entrepreneurship, innovation and flexibility to address local market and 'niche market’ needs.
Unfortunately, this very strength becomes its greatest weakness - when it comes to the 'Power of Procurement'.
HOWEVER, there is a simple solution!
The GAP Program
In a globalised market, multi-nationals and corporate business are leveraging the power of procurement through 'size' and 'globalised procurement strategies and strategic sourcing strategies' to drive aggressive negotiations within low cost manufacturing countries (LCMC) and within local markets where they do business to address - supply gaps, roadblock, leakages - and to deliver negotiated and realised savings back to (a) a project, (b) business unit, (c) groups profitability.
The GAP (Group Aggregated Procurement) program (copyright, HERM Logic) is leveraging the power of procurement for SME's through an overarching strategic sourcing plan and framework based on profitable partnering.
As a result, our next generation GAP Program has delivered negotiated and realised savings from 10% - 35% to projects, business units and the bottom-line of the group’s P&L Statement.
To learn more about the GAP Program, you can download the PDF here!