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Uncover Hidden Profits in your Business

Many businesses spend time, effort and resource in an attempt to increase sales as a method of increasing the profitability of the business. While no one can disagree that it is right to get the ‘front end’ working well often businesses overlook the “other end of the process” and don’t ensure that they are sourcing and procuring supplies, raw materials and consumables cost effectively and efficiently.

A 5% overall saving in costs can equate to a 10 – 15% increase in sales!

We live in a global market and often what happens in one part of the world can have a serious and immediate impact on your business.

Raw materials are a finite resource and with global consumption rising, the upwards pressure on cost has never been more extreme than it is today.  Cost impacts filter down to your bottom line profits and affect our businesses, faster than they have ever done before.  It is easy to feel helpless and unable to do anything until it’s too late.

Many companies will have a business plan, communicating the key strategies that define the company and how they operate, but how many companies can claim they have a procurement strategy, and if they do, how closely does this align to the overall business strategy and company direction? Ask yourself:

  • Have you mitigated the risk in your supply chain?
  • Do your procurement strategies and supplier agreements address every eventuality?

In a 2014 Deloitte survey, 69% of Chief Procurement Officers viewed cost reduction as a key business strategy.   This survey is partly correct.  Reducing cost prices and growing profitability is something that companies strive to do, and having a purchasing plan will certainly help in this respect.  But, having an effective procurement strategy will not only have a directly positive impact on your profitability, but will also:

  • Save on operational costs
  • Enhance business efficiencies and ultimately
  • Drive sales

Sustainable and ethical sourcing are becoming a hot topic, with legislation driving business behaviours in both the private and public sectors.  How well placed is your company to take advantage of this fast growing trend and either:

  • Source for your customers’ needs or
  • Confidently tender for business, knowing you fully understand the sustainable sourcing requirements

Being on the front foot in your understanding of sustainability will be of great competitive advantage as legislation increases going forward.

The companies that prosper have plans in place to mitigate risk against cost price inflation and take advantage of market easing and the subsequent currency and deflationary advantages that may be available. 

How often do you hear “we’ve always done it like this”, “we’ve bought from that company for years” and “I know we get a good price, but their service leaves something to be desired”?

If this is the case, the person or people that are responsible for purchasing may need some support and guidance in implementing the correct procurement strategy for your business, as purchasing is about being creative, driven and dynamic, if your company is to perform better than the competition. Don’t be outsold or outbought!!  

Tinderbox’s approach is straightforward.  We offer strategic sourcing solutions, with structure, process and world class procurement skills and principles. 

How would we help?

  • Initial meeting to discuss your procurement challenges
  • Proposal prepared addressing these challenges and suggesting solutions
  • Assist in implementing proposals where required
  • Train your staff in on going implementation of identified  best practice

We advise on vendor management strategies, developing collaborative partnerships, risk management and ensure that you, your business and your team are fighting fit to face the challenges and ultimately make a material difference to your company’s bottom line. We make best practice easy to understand and implement.

If you would like to speak to a Tinderbox Procurement expert please contact us by  email in the first instance via ignite@tinderboxbusinessdevelopment.co.uk or by phone on 0116 232 5231.

It may be the most profitable call you make this year!

David Turner

Managing Director

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Who we have worked with

Who we have worked with: Hallmark Cards, Coca-Cola, Hasbro, Rolls Royce, Sunseeker, Mattel, MicroSoft, Argos, Auto Glym, P&G, Ferranti, FloGas, Lloyds TSB

Tinderbox Limited Registered office: Ventura House, Ventura Park Rd, Tamworth, B78 3HL, Registered in England
Company registration number 7663634

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