Save Buying

Auctions in LICIFY
21 June, 2018
26 June, 2018

Save Buying

Currently, the cost of purchasing supplies or services is equivalent to 50% or more of the income of a construction project. Despite being the most representative cost in most organizations, it does not receive the attention and the corresponding strategic planning. This is because the process is divided into innumerable micro-processes and individual negotiations. Therefore, the optimization of each one does not have a real impact within the financial results of the project. The key then is to optimize them together and with standardized processes, so that these improvements are reflected in the profitability of the project.

Purchasing management can be strategically planned in search of individual savings that achieve significant group savings. It is a structuring of different stages with specific objectives to guide the process and achieve the expected results. Likewise, it must be analyzed as a macroprocess with general objectives so that there is an alignment that can generate a positive synergy. Strategic planning must take into account several factors that guarantee savings in the purchasing process.

The use of different negotiation techniques seeks to optimize prices from different perspectives. An initial negotiation where a significant number of proposals are received, manages to collect information about the offer, a necessary condition to understand the market and make better decisions. Once this initial situation is understood, one should proceed to use the renegotiation techniques stipulated by objectives. In a business above COP1,000 million, a reverse auction may be carried out that invites suppliers to optimize their costs, understanding that economies of scale are convenient for them. This technique can achieve savings of around 8% over the initial budget. For supply negotiations and with an average number of individually quoted items, an individual renegotiation to later make a partial award may be the best option. In this case, we look for the best option for each item and negotiate what would be the award profile, achieving the best price for each item in specific and reaching the minimum value of our comparative table. Finally, in the case of long-term negotiations, it is important to establish basic conditions for the business that are flexible to market conditions, taking into account the benefit of one as a buyer. This should take into account variables such as exchange rates, quantities, dates and delivery conditions among others.

The application of the different options, understanding the needs and particularities of each business, seeks to generate greater savings when buying and impact the profitability of the projects. The choice of each must have a sense and an alignment with the purchasing and negotiation policies of each company. Systematic savings in purchases have a significant impact on the usefulness of a project, and may even double when a strategy and an appropriate methodology are developed. Finally, the development of this system in an appropriate way can be leveraged with the implementation of information technology within the process.

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