Over the next few weeks, we’ll be looking at the key elements that you need to consider when you’re looking to employ a procurement agency.
At first glance, it might appear that this article is a great place to start, but don’t get too excited just yet – there are some very important questions you should ask before you start your search.
Why should we use your agency?
This is a very important question. As we’ll discuss in more detail below, procurement agencies have their pros and cons. Some agencies are very transparent and transparent pricing is usually the key benefit of using a procurement agency. Others charge a set fee and then add on additional costs for additional work.
There are a number of key reasons why you may want to use a procurement agency:
Cost savings
In some cases, you might find that using a procurement agency actually costs less in the long run than using a number of suppliers. This is because you don’t have to pay for inventory, or for a transport or distribution service.
These are just some of the costs that you might save by using a procurement agency.
Advertising
Many agencies have a large network of suppliers and so they’ll be able to advertise the benefits of using a procurement agency to a range of suppliers that you might not be able to contact directly.
It’s important to remember that not all agencies have such a network, so you should make sure you know who you’re dealing with.
Speed
Some procurement agencies UCT (Asia) are able to respond to enquiries quickly and efficiently. This is often because they have a large team, but also because they’ve already spent time negotiating and agreeing a price with a large number of suppliers.
This will mean that you’ll get a prompt response to your enquiry.
Market knowledge
Some agencies will have a large number of suppliers from which they can draw on for new enquiries. This means that they know exactly where to go, when you’re looking for a supplier.
Can we afford to use a procurement agency?
Although some agencies charge a set fee, you might find that they add extra costs. For example, they may charge for follow up and they may be able to charge you for taking your existing suppliers away from you. Ask yourself the following questions to help you decide whether it’s a good idea to use a procurement agency.
