If you have been running a successful e-commerce business but suddenly can't compete with the large retailers offering similar merchandise at "rock-bottom" prices, then you may just not know what to do to become successful again. You may have dropped your prices lower and lower to compete but have now realized you just can't drop your prices any lower, or else you will not make a profit on your merchandise. How can you become competitive again? The right strategic-procurement sourcing consultant can help. Read on to learn how one can help you no matter what you sell.
Strategic-Procurement Sourcing Consultants Help You Find Rock-Bottom Prices on Supplies
There are many steps and goals to strategic sourcing, but one of your consultant's goals will be to get you great prices on quality supplies. While you may have made many phone calls and sent many emails in attempt to get your supplies at rock-bottom prices like the "big guys" do, that doesn't mean that a strategic-procurement sourcing consultant can't help.
Your consultant will find deals for you in ways that a single business owner just can't. He or she will have likely built many great business relationships with suppliers all over the world. Since your consultant handles procurement sourcing for other companies, the suppliers they work with will be more willing to drop prices on supplies just to ensure they keep getting repeat business from your consultant.
In addition, while you may have contacted all of the suppliers you know of, the truth is there are likely hundreds, if not thousands, of additional suppliers of the product you need all over the world. Many consultants have built huge databases of suppliers, and yours likely knows of many that will be willing to offer you products you need at prices you never thought you could purchase them at.
Your consultant will also know the seven sourcing business models, which range from basic provider to the vested outsourcing model to the equity relationship model. When making arrangements with your new suppliers, your consultant can help you choose whether one of these supplier relationships will benefit you in the short term and long run. For example, if a vested business relationship is formed with the supplier of a specific product you sell, then that supplier will have a stake in how well the product sells. This may consist of a small bonus above and beyond what you pay per item if you end up selling above X number of units in a quarter or any other agreement that gives your partner an incentive to sell you not only affordable items but also those of great quality.
Your Consultant Can Also Help You Decide Where Else You Can Cut Costs
In addition to finding you good prices on supplies you need, your strategic-procurement sourcing consultant will also look into other aspects of how your company is run that, when tweaked a little, can result in you saving money. For example, if you train your own employees, then your consultant will look into what it costs you to train them and may find that outsourcing training will actually save you money. When you are trained on-site, the average cost of training a new employee is over $5,000. There are several ways to outsource your employee training, and your consultant will not only help you choose the right one for your business but also negotiate a deal with the company who will do your training to save you even more cash.
Your consultant will also look into your overall financials and and perform cost analysis to find ways that you are losing money that you haven't identified. You may have a product that actually costs you more to produce and keep in stock than you realize, and this may be losing money over the long term, even if you sell many of the product. Your consultant can look at your financials with an unbiased eye that can help you realize just where all that money is going.
If your e-commerce business isn't as successful as it once was due to the fact that the big retailers keep dropping prices, then you may not realize that with the help of a strategic-procurement sourcing consultant, you can compete with them. The "big guys" are able to keep prices low by negotiating super-low prices on their supplies and by keeping a constant eye on where they can cut costs in their day-to-day operations, and with the help of a good consultant, so can you.
Talk to a company such as Principle Info Tech to learn more.Share