What actions do you take to improve efficiency and obatin better value for money?

Question

(This is for procurement)

Answer 1

Get fixed-term purchasing agreements, invite tenders for supply.

Answer 2

Review all contracts on a regular basis - better have at least 2 suppliers for all products

If you have to enter into 'sole supplier' contracts, tie prices to eg. X% lower than the current industry standard product average price ... and make sure failor to deliver within the agreed timescale cancels the Contract ..

NEVER sign fixed price multi-year supply contracts for Computer Equipment ..

Allow Managers to make their own purchasing decisons - some will want to conserve their Budget so will seek lowest price - others will need items in a hurry so will pay who-ever can deliver the fastest ..

Answer 3

it depends on what you are talking about; if we talk about labour efficiency, you must take into account learning curve effect, it means that people at beginning perform tasks slower but when time passes they gain experience and do things quicker. As a result of this, you need to monitor things on a regular basis. Furthermore, you can implement bonuses and other incentive programms. If you talk about suppliers, you need to check on regular basis agreements, possible offers. However, you need to bear in mind that good quality components, materials mean higher cost to you. Cheaper stuff may or may not be good quality, remember also about reliability and other non-financial factors, they are important to proper operation of the firm. If we talk about customers, try to check their satisfaction (install opinion box or something like that). If you have any queries, give me a shout.

Answer 4

Consult an independent financial adviser & they'll advise you