Here’s what you should know about material procurement…
So, you’re likely here because you have questions about material procurement. Fortunately, we have answers! The procurement process can often come across as complicated and overwhelming. However, there is support available to help you feel more comfortable and confident in this aspect of your business.
For many organisations, material procurement can play a huge part. In this blog, we will explain what material procurement is, for those who are unfamiliar. Then, we will tell you about the support that is available, should you need it. Keep reading to learn more!
What is material procurement?
Material procurement is the purchasing process for goods. For example, in construction, many materials will be required. Scaffolding and tools may need to be hired. Material procurement is the process of selecting, ordering, invoicing, paying for, and having materials delivered.
It is important to develop a suitable purchasing strategy which involves selecting material suppliers. They are selected based on a variety of criteria. This could include the following:
- Delivery time
- Price
- Quality
- Project constraints
- Financing
- Risk.
Sustainability
Sustainability also comes into question as construction is the largest single category of waste going to landfill. The industry is also one of the largest producers of CO2 emissions. In many cases, the contracting authority may assign a stipulation that a certain percentage of materials must be recycled. So, it is always good to have a sustainable procurement strategy in mind.
In construction, sustainable material procurement may include the consideration of the environmental, social, and economic consequences of:
- Manufacture and production methods
- Design
- Non-renewable material use
- Maintenance and repairs
- Reuse and recycling options
- Logistics
- Service delivery
- Building use and operation
- Disposal.
Competitive material procurement
Given how sustainability plays a part in material procurement, it can be competitive amongst suppliers. This is primarily within the public sector. The buyer is required to select the supplier that offers the most economically advantageous tender (MEAT). In the private sector, it is still likely that buyers will prefer to look for this as well. So, it is always an important aspect of a tender that both buyers and suppliers should consider.
Who can help with material procurement?
Now that you know a bit more about material procurement, you may wonder who can help. Afterall, it can be a lot to deal with, especially when you’re already busy. Thankfully, there are businesses that specialise in procurement. Hudson Procure, for example, are here to guide organisations through the entire procurement process, if required. Whatever help you need, we are confident we can offer solutions.
Our Procurement Team have 20 years of experience, working with clients in over 30 countries, across 20 sectors. If you are new to procurement, it can be even more beneficial to have such guidance. Our specialist Sourcing Consultants will learn about your business and listen to your requirements. They will then work with you to prepare your documents and guide you to see results.
It is important that procurement is conducted correctly. Unfortunately, many businesses neglect this. With an expert by your side, you’ll be able to have confidence in their abilities. Plus, you can rest assured they will conduct the process as efficiently and effectively as possible. Up to 70% of services must be procured. That is a huge percentage! So, it leaves a lot of room for mistakes.
By turning to sourcing consulting firms, you can make your procurement more effective. This can be in several ways. Some of these include:
- Increased output
- Enhanced performance
- Increased efficiency
- Enhanced quality
- Effective risk management
- Legal compliance
- Budget saving
- Cost avoidance.
Summary
So, now that we have reached the end of our material procurement blog, let’s recap so nothing is forgotten.
What is material procurement?
Material procurement is the process of purchasing goods for particular services. The construction industry are the best example. They will need to procure plenty of materials for particular projects.
Sustainability
The following will often play a part in how sustainable a supplier’s methods may be:
- Manufacture and production methods
- Design
- Non-renewable material use
- Maintenance and repairs
- Reuse and recycling options
- Logistics
- Service delivery
- Building use and operation
- Disposal.
Competitive material procurement
Sustainability can also make tendering more competitive. This is because many buyers will prefer sustainable options. The more sustainable a supplier is, the more likely they are to be considered.
Who can help with material procurement?
You can turn to procurement consultancy companies if you require help and support with material procurement.
How can Hudson Procure help with the procurement process?
At Hudson Procure, our procurement experts have nearly two decades of experience. No matter what kind of support you’re looking for, we can help.
Procure Consult
With Procure Consult, we’re offering support with tender management and ad-hoc procurement consultancy. Our expert team will manage the end-to-end procurement process or offer assistance at any stage, as and when required.
Procure Health Check
With Procure Health Check, we’ll conduct a full review of the strategic and operational procurement processes within your organisation. We’ll identify the areas that need improvement and help you drive greater value from the procurement process.
Procure Analyse
The purpose of Procure Analyse is to conduct a high-level analysis of your spending activity. We’ll help you understand your current purchasing behaviour and highlight areas that can deliver greater value. Offered as part of Procure Health Check or as a standalone service.
Procure Outsourcing
With Procure Outsourcing, we deliver a range of procurement solutions on an outsourced basis, completely bespoke to you. This can range from delivering multiple tender projects as a package to delivering the full procurement management function of your organisation.
Procure Post
With Procure Post, you can share your tender on one or more of our 11 sector-specific portals. This way, you’ll increase your chances of finding the perfect supplier.
Get in touch for a consultation and find out how we can help your business grow.
Check out our other blogs for further Procurement Insights:
