How can your business improve procurement efficiency from an industrial park?
- Improves supplier relationships
- Enhances networking opportunities
- Attracts skilled labor pool
- Promotes global partner relationships
In every business sector, the logistics chain should be functioning effectively and efficiently at all times. However, this is often easier said than done, especially in departments like procurement where operations are heavily dependent on the actions of others. During the pandemic, this becomes even more challenging for many organizations. Fortunately, there are plenty of ways on how a business can improve procurement efficiency. Among all those, choosing the right location plays a pivotal role for most organizations due to its major influence in cutting down overall costs.
Industrial parks are zoned facilities built for industrial development. Industrial parks in the Philippines have been growing abundantly due to the demand for specialized infrastructures. Among its many benefits, setting up a business inside an industrial park can improve procurement efficiency as well. Continue reading on to learn more about this.
Improves Supplier Relationships
Procurement is the process of acquiring goods and services from an external source, often employing a competitive bidding process. Hence, at the core of procurement functions are supplier relationships.
One of the biggest advantages of businesses situated in an industrial park is its complete and integrated infrastructure. After all, the primary reason why industrial parks were built in the first place is to provide an environment that is conducive to the successful operation of its organizations.
Not only do industrial parks give you spacious facilities you need for day-to-day operation efficiency, but it also offers other numerous useful features as well. This includes intra-city road networks, communication facilities, and freight forwarding service support, among others. During the COVID-19, ease of transportation became more important than ever. Goods need to be supplied and delivered, to and from facilities.
Maintaining professionalism and recognizing their importance while dealing with the suppliers is a vital contribution to business growth. If your business is located in an industrial park, it will do more good for both parties. The better the relationships you establish and maintain with suppliers, the more likely you’ll be able to negotiate better procurement deals. While suppliers benefit from inclusive services, you are more likely to cut down on operational costs.
Enhances Networking Opportunities
It may seem straightforward just to take charge of procurement projects and not involve other stakeholders, but it is known that achieving efficient results from enhancing networks. Input from other departments helps gain insightful perspectives on good suppliers and builds trust to push project completion faster.
There are many tools for communication used by businesses. In an industrial park setting, networking with other people has never been easier. There are provisions for high-end communication lines and reliable energy supply systems in industrial parks. Take the Light Industry & Science Park III in Batangas as an example, which has its own telecommunications facilities and centralized power supply.
As a result, business departments can freely communicate. While both internal and external parties can also negotiate better for projects without worrying about power outages and failing communication lines. Undoubtedly, the pandemic has made organizations realize that communication and transparency are highly crucial for the survival of operations.
Attracts Skilled Labor Pool
Procurement efficiency starts with having the right people in the team. The more skilled your workforce is, the easier it will be for the business to optimize procurement processes.
As businesses increasingly recognize the cost-saving opportunities an efficient procurement process can have, the search for skilled workers remains to be the main priority. In this case, firms are hiring data analysts and financial analysts for optimizing their procurement departments. These types of skilled talent help your business make informed decisions using predictive analytics and thus, build more efficiency into your procurement process.
In an industrial park, employees are offered career opportunities unlike any other. With varied amenities such as easy transportation, top-notch security & protection systems, availability of support facilities like banks, hospitals, restaurants, industrial parks naturally attract talent.
Industrial parks set the standard when it comes to amenities for business locators because of the amenities that they offer. As a result, employees are retained because they gain a sense of work-life balance. This also proves to be beneficial for ensuring the well-being of employees during the pandemic.
Promotes Global Partner Relationships
Today’s successful businesses are all about going global. Building relationships with global partners increases procurement flexibility for your business.
Oftentimes, the best supplier negotiations that benefit procurement efficiency are formed in global locations. This is because global supply chains provide more options and better prices compared to close locations.
Industrial parks are zoned areas specifically designed to attract global investments and partnerships. Aside from being accredited as PEZA economic zones, industrial parks in the Philippines are strategically located to be near air, sea, and land transportation hubs. Upon negotiating deals with global suppliers, it is easy to import supplies.
Given the negative impacts of COVID-19, procurement departments of companies would greatly benefit from the ease of securing forming partnerships and garnering lucrative opportunities.
In this article, we have rounded up how your business can improve procurement efficiency from an industrial park. By building procurement efficiency, your business can become more profitable and cut down costs. All these prove to be advantageous during an era struck by the pandemic.
Align your business procurement strategy by partnering with Science Park of the Philippines (SPPI). With years of expertise in the industry, we have been chosen to house Fortune 500 companies and major multinational companies such as Procter & Gamble, Unilever, Pepsi, and more. Our facilities are inclined to help your business attain long-term goals.