Beginning in 2016, procurement practices at Pete Lien & Sons made a compelling transformation. Previously, each individual business unit performed purchasing entirely separate from other internal divisions throughout the company. With the establishment of a centralized Procurement Department and related inventory management system we began to standardize purchasing practices company-wide. The challenges we faced not only arose from long-term suppliers but in many cases also manifested with internal personnel. Due to this initiative, our operating efficiencies and total spend have improved significantly and are now better positioned to realize other cost-saving opportunities.
- A consolidation of procurement efforts will uncover many hidden efficiency and cost-saving measures
- Be prepared for resistance, from both external sources... and internal