Efficient procurement is important for multi-branch and franchised organisations to achieve operational excellence and cost savings. Procurement workload is expected to increase by 6.6% in 2024.
Procurement platforms serve as pivotal digital nerve centres for the entire procurement lifecycle, and companies are projected to increase their procurement technology spend by 4.6% to address productivity and efficiency gaps. Picture a centralised hub that automates tasks, streamlines workflows, and enhances collaboration seamlessly.
Procurement processes are riddled with challenges like juggling multiple supplier logins, manually comparing prices, and tracking purchases across different suppliers. These issues are amplified when managing multiple user groups, leading to rogue spending with non-preferred suppliers or unapproved products, and suppliers failing to honor centrally negotiated prices. Without visibility, it's tough to determine whether your initiatives are making a difference.
Franchise organisations, by their nature, share a common Brand, Product or Service, and Consumer Experience. So it makes perfect sense to extend the franchise synergies to take advantage of a common supply chain. When implemented well, collective procurement can provide powerful buying power, along with improved service and admin efficiencies.
So, what’s the best procurement strategy for franchise organisations?
It’s time to centralise your e-Procurement!
Procurement professionals are spending almost a third of their time dealing with manual procurement processes. Yet, despite technology investments, businesses have only digitised less than half (45%) of procurement processes.
A key strategy to combat these challenges involves deploying a centralised e-Procurement portal that connects all branches and suppliers to a unified system.
This means a single platform with unified login credentials that integrates all supplier products, updates pricing in real-time, and provides side-by-side comparisons of supplier offerings.
Sound too good to be true?
Eversource enables purchasing of your approved products from preferred suppliers, leveraging bulk purchasing power for competitive pricing, all while updating pricing live, and keeping all of your invoices in one place (even if your products are coming from different suppliers).
Standardising procurement practice minimises administrative overhead, reduces discrepancies, and enhances compliance with procurement policies. By adopting Eversource, organisations like Choice Hotels and Lion have streamlined procurement across diverse branches, ensuring consistency and cost-efficiency.
The solution is tailored to you. Maximum engagement is achieved through branding your marketplace and providing a great user experience. Products are presented in a format that best suits the nature of your business, making everything easy to find. The process and automation of finance administration is configured to your needs. The Eversource team bring a wealth of proven experience, making implementation simple. This means you can launch your new solution within weeks of selecting Eversource.
Are you using data-driven insights? Research says, probably not!
Utilising comprehensive data analytics is a critical strategy, and if your organisation has implemented a centralised e-procurement system like Eversource, then this step should be a breeze!
However, for a lot of organisations that don’t have a centralised system, their confidence in procurement data falls short.
SpendHQ's recent survey revealed a striking finding: 75% of respondents expressed doubts about the accuracy of the procurement data they present. Consequently, 79% of non-procurement executives (who hold the purse strings) feel only somewhat, or not at all confident in using procurement data for strategic decision-making.
With this data, a parallel challenge emerges – 79% of respondents indicated that their procurement teams lack dedicated management software to track and manage performance, relying instead on spreadsheets.
Procurement has a big data problem.
Procurement teams should be able to easily get insights into procurement activities, supplier performance monitoring, and identify opportunities for cost savings. That way, decision-making based on data insights allows continuous optimisation of procurement strategies.
Visibility across Franchisee sourcing is also a powerful tool for Operational teams, to follow compliance of brand standards and recommended best practice. Whilst Procurement teams seek information on who’s ordering, the Ops teams are often more interested in who’s not!
According to Deloitte, investments in advanced digital solutions are a key enabler for success. A Saas solution can prove a quick and cost-effective way to deliver this - whether integrated or stand-alone from your ERP. Organisations leveraging data analytics with Eversource have effectively identified cost-saving opportunities, optimising procurement processes and enhancing overall financial performance.
Do your branches actually read your communications?
Does your Comms & Marketing team spend a whole lot of time putting out notices and responding to queries from individual franchisees? An effective community portal fosters seamless communication among branches and franchisees, ensuring alignment with procurement policies, product updates, and best practices.
Enhanced communication and visibility promote uniform standards, improving operational efficiency and decision-making. Companies utilising this feature on Eversouce, have reported improved collaboration and adherence to procurement guidelines, leading to smoother operations and quicker response times. The unlimited user license is ideally suited for franchise networks, for maximum reach and engagement.
Additionally, Eversource allows you to upload editable marketing collateral, saving your marketing and communications team hours updating templates for each branch.
Eversource has facilitated the procurement of over $1 billion worth of goods, underscoring our efficacy in large-scale operations.
Streamlining multi-branch procurement processes is pivotal for achieving operational excellence and driving substantial cost savings. As the demand for procurement efficiency continues to rise (remember the anticipated 6.6% increase in workload by the end of 2024) organisations are recognising the imperative to bridge productivity and efficiency gaps through advanced procurement technologies.
This approach not only simplifies procurement workflows but also enhances transparency, compliance, and cost-effectiveness.
Visit GoEversource to learn more.
