Investments into sourcing operations are paying off substantially for retailers, grocers and restaurants, according to an industry survey of procurement executives and practitioners, conducted by Intesource. Sixty-two percent of the procurement and sourcing professionals surveyed report their sourcing strategy has a direct and positive impact on company margins, profitability, working capital and cash flow.
In the last two years, retailers and grocers that used e-sourcing to competitively procure facilities maintenance service contracts saved approximately 22 percent per event, according to data from Intesource.
Is ignorance bliss when it comes to sourcing? A recent poll of buyers in the retail, grocery and restaurant chain industries found that 75 percent of those not using e-sourcing methods are confident that they're getting the best value from their suppliers. But they're wrong, according to a report from Intesource. A suppliers' true rock-bottom price is almost always far lower than a buyer suspects. And it's even more likely another qualified source may be hungrier for new business. Buyers just need to know how to shift the tables.