Exploring Differences and Alignments within Procurement and Finance
Procurement and finance, while distinct functions within an organisation, are intricately interconnected, often joining forces to achieve common...
In today’s dynamic business landscape, striking a balance between market presence and operational procurement and supply chain efficiency is pivotal.
A diverse product range can capture varied market segments, but the behind-the-scenes challenges of sourcing components for these products can strain resources and costs.
Delving deeper, every hard-to-procure component not only pushes up your expenses but potentially disrupts your production timelines, risking promised delivery dates and jeopardizing customer trust. On the surface, offering a wide range of products might appear as a strategy to capture market share, but if it comes at the cost of consistent delays and heightened expenditures, it can lead to eroding customer loyalty and potentially diminishing returns.
It’s a delicate balancing act – securing market share through diverse offerings, versus ensuring cost-efficiency and supply consistency. Therefore, regularly evaluating your product offerings, at least annually, is crucial. By phasing out products reliant on elusive components, you can prioritize those with assured supply chains, resulting in a more streamlined operation and consistent market performance.
See our top 20 free advice for rapidly reducing supplier costs