ProcNet Services Pty Ltd, a Group Purchasing Organisation based in Victoria worked in partnership with South East Melbourne Manufacturing Association and conducted a survey of a segment of its membership. The survey looked at the different companies rating the relative importance of Indirect purchasing needs to different businesses. The results of the survey are being used to direct Group Purchasing activities and use collective spend to drive discounts for Australian SME manufacturing organisations and help to reduce their costs.
The survey asked for the participating organisation to rate different spend categories based on either due to the critical nature of the category or due to the high cost contribution to the overheads. A subsequent analysis was conducted based on the size of the organisations, the potential size of the spend and the category criticality to find a weighted score of importance for each category. The survey results have been used to begin to plan in the next round of Group Purchasing Tenders to be made available to interested vendors. The results will continue to drive additional categories into the future.
“At ProcNet Services we have a history in manufacturing and understand the cost and business pressures the Industry is feeling. We have a natural bent towards generating a business model which adds value to this Industry. That being said, while the focus of the next categories we are introducing will be based on results coming from a survey of predominantly manufacturing organisations the categories will often be relevant to a much broader base of industries.” ProcNet Services founder and Director Scott Harkin explained.
ProcNet Services are currently looking for interested SME organisations to further grow the database of interested organisations in order to release two new Group Purchasing tenders in June 2013. These will add to the growing range of Categories already available to industry at no cost or minimum spend requirements. A high level online form can be completed on their web site or a call in can be made to register interest. The larger the collective spend through the categories the greater the potential savings to be achieved. Savings made by the current membership for the categories already on offer can be anywhere between 15% and 40%. These savings are significant and show the real benefit of taking advantage of the collective buying power of a Group Purchasing Organisation.
The next Phase of Tenders will be covering Courier Services and Industrial Gas Supplies. Registration by interested buying organisations can be made by going to http://www.procnetservices.com.au/tenders/.
About ProcNet Services
ProcNet Services Pty Ltd is a Group Purchasing Organisation. It has negotiated agreements with suppliers with National reach such as Officeworks and Cleanaway. It has been able to create discount opportunities for Australian SMEs using the collective spend of all of the companies spending through its contracts as leverage. It allows SME organisations to access buying power of much larger organisations and implement the savings rapidly saving them valuable time and the resources required to undertake sourcing activities themselves. It can help to provide a direct savings comparison and there are no upfront costs, minimum requirements or long term commitments to join.