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. After the client implemented certain repricing recommendation, he had confirmed saving of $82,000 within four months. Discover more here about our repricing recommendations.
The Entire Process
A four to six week business process assessment that focuses on business function like Procurement that seeks new business insights and quantifiable benefits to fully maximize technology investments Looking for high impact opportunities to realize “real” savings from better processes is the goal of the process assessment, and not just looking for places to plug in new software.
The Entire Coverage
We have a client who processed purchase requisitions into how to purchase orders. We found out that their purchasing software unlike the one with a certain online seller lacked the ability to easily review and consolidate similar requisitions to drive lower pricing is the problem. However, to ensure they were getting the best pricing available, the buyers repriced three requisitions per buyer per week and followed up with the vendors. To provide a sizable payback, developers have increased the repricing performance and on average, we determined that they saved a few hundred dollars per repriced requisition for about 60% of the transactions processed.
Think of Additional Recommendations
According to our interviews and calculations, increasing the number of weekly repricings from three to ten per buyer would result in a net savings of over three time the current savings which is a good news by the way.
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. Setting a baseline to measure the future performance is recommended and also communicating repricing results and cost savings back to requisition originators to encourage better initial pricing which will give every customers a huge smile .
The importance of this Choice
In place of the recommended ten repricings per buyer per week, the client undertook performing the six repricings after reviewing our suggested repricing goal recommendations and is starting to worry. 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.