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Procurement

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Information about

Procurement

Procurement is an important part of a company's operations, as it directly affects the company's financial results and operational efficiency. Procurement can involve raw materials, supplies, equipment, or services, for example. In this article, we will provide more detailed information about procurement and its significance for businesses.

The procurement process usually begins with identifying a need. Then, requests for proposals are made to suitable suppliers, and the offers are compared. Once a suitable supplier has been selected, a contract is made and the procurement is carried out. The procurement process also includes monitoring and evaluation of the purchases.

Outsourcing can be useful, for example, when a company does not have sufficient resources or expertise in procurement management, or when it wants to focus on its core business. Outsourcing can also result in savings and improve procurement efficiency.

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Price

Procurement service

Provided to the customer for free, Avican bills based on the realized benefit. With our procurement service, we aim to save our customers' costs by procuring the necessary services for them by competitively bidding several suppliers. If the customer is able to obtain the service at a lower price through the bidding process, Avican bills a percentage of the amount saved.

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The use of the service is free, and we bill the customer 12.5% of the amount saved. For example: The customer currently pays 20,000 euros per year for insurance services. With our procurement service, we find a quote for the customer that costs only 15,000 euros per year. The customer saves 5,000 euros per year, or 10,000 euros over two years. Avican bills the customer 25% of the amount saved, or 1,250 euros per year. Therefore, the customer saves a total of 7,500 euros over two years.

Procurement service

1. The customer signs the agreement and authorization.
2. We collect the necessary information about the customer's current services and costs.
3. We use this information to competitively bid the services with multiple suppliers.
4. We present the findings to the customer and assist them in making a decision.
5. If the customer realizes cost savings, Avican invoices based on that. If the customer chooses a new service provider, Avican helps with the contract negotiation process.
6. If the customer does not realize any cost savings, Avican does not invoice for the service.
Q & A

Frequently Asked Questions (FAQ)

Procurement management is important because it helps a company make efficient and cost-effective purchases that can help achieve the company's goals. In addition, procurement management helps ensure that purchases are of high quality and that suppliers are responsible.

Procurement can be done responsibly by selecting suppliers who adhere to responsible principles and who offer sustainable products or services. Additionally, it is good for the company to evaluate the environmental impact of purchases and strive to reduce them.

The bidding process is a process in which a company requests bids from different suppliers to purchase specific products or services. The bidding process often involves drafting a bid request, selecting suppliers, receiving bids, and comparing bids.

Suppliers are usually chosen through the bidding process. Based on the bid request, the company evaluates the suppliers' bids and selects the most suitable supplier. Selection criteria may include price, quality, responsibility, and delivery reliability.

Procurement costs can be managed by improving procurement management and the bidding process, negotiating prices with suppliers, making purchases in large quantities, and using efficient procurement systems.

There are many factors that contribute to a company's success, but sharpening procurement is one of the most essential. It is a key to success and sustainable competitiveness, and our successful customers are an excellent example of how effective procurement can help a company succeed.

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