4 golden rules for improving your Class C purchases

Class C purchases or spot buys representing a small 5% fraction of the total spend but a big 60% amount of PO is in general a pain and not a focus unless outsourced to one or several specialists.

Manutan is one of those specialists and since years is publishing very good content about their core business : taking over on the complexity of managing the spend tail. For more than 10 years, Manutan has been providing hundreds of customers with support and guidance about Class C purchases and in one of their article they are underlining 3 golden rules to follow in order to streamline Class C purchases :

 » 1. Work with a supplier offering an extensive product range (addressing the « long tail »), providing logistical services to all the company’s sites and issuing highly detailed reports. Data is the keyword in this area.
2. Implement an e-procurement solution. Programs are currently available to suit all types of company and budget. Examples include Punch-Out, hosted catalogues and other solutions for companies without an e?procurement system.
3. Ensure that the supplier knows how to work with your procurement department in order to sign a blanket agreement and also communicate with users to promote the agreement, such as through on-the-ground visits ».

I would add to the above a 4th and # 1 rule :

4. Ensure the supplier provides extensive monitoring and reporting capabilities – also called data driven capabilities – so that you can improve the way you manage your Class C and ‘your’ user experience to further reduce costs or enhance efficiencies.

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