These basics come together when a competitive bidding environment is established for vendors. Of all new approaches to vendor bidding on the market, the one that is producing the best results is the automated vendor selection technology that is noted in the “Welcome Innovation” bullet point above. Gindlesperger said savings of 25 percent to 50 percent on procured goods and services, such as printing and manufactured specialty parts, are being reported. The strength of this process is it has the buyer establish a database of pre-qualified vendors that the buyer maintains so the database is up-to-date from project to project. All vendors in the database are carefully vetted so the buyer knows that regardless of pricing, a quality job will be delivered on time by a trusted supplier. When job specifications are entered into the computer, the automated vendor selection procedure matches the specs with the capabilities of all vendors in the buyer’s database but only invites those best qualified to do the work to bid. Low bid typically wins, and prices are discounted because vendors usually bid on the work to fill production gaps or downtime.
Make Procurement a Priority for 2012
The communications and workflow system that supports AVS Technology® is ideal for establishing clear communication, total transparency, full accountability, complete documentation and accurate invoicing. It is web-based, tailored for each buyer’s needs and serves as an extension of the organization’s existing procurement function. Being web based, it can be accessed by all participants. The thoroughness with which every task is documented makes it an excellent tool for planning, quality control, production monitoring and archiving.
With advances such as this, Gindlesperger encouraged every C-level executive to take notice and make a 2012 resolution to improve bottom-line results by controlling expenses with procurement innovation that will bring antiquated procurement processes into the 21st Century.