LOGISTICS

Ensuring reliability and resilience in procurement

Higher expectations from clients and the rising costs associated with the global supply markets of an omnichannel world present a unique set of challenges for logistics companies. A prevalent trend within this industry is to outsource certain areas of logistics or form partnerships with other organisations that operate in the sector.

By expanding beyond the transport of goods into other stages of the supply chain (such as inventory management or final assembly), organisations can build upon their offered services and capabilities to ensure long-term profitability within a highly competitive environment. This approach requires an effective and sustainable procurement strategy.

WHY IS PROCUREMENT IMPORTANT?

Poor procurement decisions are often costly and time-consuming. It can negatively impact the effectiveness of your budget and your organisation’s ability to compete with others in the industry. Poorly vetted suppliers may also have a knock-on effect on your reputation by causing unnecessary delays to your operations or delivering a poor-quality service.

For logistics companies, effective procurement can incorporate more than simply understanding and controlling costs. When outsourcing, being able to secure flexible contracts with reputable suppliers is essential for dealing with short product life cycles, changing supply bases and different routes to market.

Within the highly competitive environment of the logistics industry, focusing on price and cost savings is rarely a sustainable strategy. When procurement becomes a part of an organisation’s competitive advantage, they are to identify opportunities within their supply chain for quality improvement and innovation. In addition to being better able to meet clients’ expectations and adapt to market changes, effective procurement means greater operational efficiency and long-term profitability.

HOW WE CAN HELP

Pinnacle Procurement works with logistics companies to identify areas of significant cost savings and support operational efficiency over the long-term.

We recognise that it is not always feasible for logistics companies to employ full-time procurement specialists. By engaging with Pinnacle Procurement, we can help you to secure the best value for money and provide you with a clear understanding of how and where your budget is being spent. In addition to benchmarking the efficiency of your current business operations, we can also ensure that market dynamics (from fluctuating fuel prices to new regulations) are captured fully in your logistics costs and that implemented processes are sustainable.