Many of the small business owners that I meet don't understand the concept of procurement and how procurement plays into the success of their business. Most of them tell me that want to get a grant to start or operate their business. It's hard to explain that there are no grants to help you start or operate a business. There are loans available and there are Request For Proposals (RFP's). I think most business owners who say they want a grant are really looking for a RFP. A RFP is the document governmental agencies and commercial businesses release when they are looking for a specific product or service. If your company fits the need described in the RFP, then your company would respond in writing per the RFP requirements for consideration of a contract. That's one facet of procurement.
Here's another: Did you know that small businesses spend between 45 - 65 % of the sales revenue on procurement of inputs? This facet of procurement should always be viewed as a viable cost reduction and efficiency improvement strategy for small businesses. Basic changes to a small businesses procurement activities could cut costs 5 - 15%.
One major procurement advantage is purchasing leverage. Small businesses usually don't have the need nor the resources to leverage purchasing leverage individually but collectively a group of small businesses could join forces and buy in larger volume therefore increasing yield volume discounts which in turn increases saving for all involved. Building and maintaining good solid relationships is a must when building a purchasing leverage collaborative.
At Tucker Consulting & Training Services, we believe if small businesses understand the rules of procurement, then they will understand how to position their businesses in an effort to achieve your procurement and operational goals. We offer both in-person and online procurement training. Visit our cyberspace today at www.tuckercts.com for more information or give us a call at (904) 469-6741.
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Yolanda M. Tucker has over twenty years of corporate procurement experience. Yolanda holds two Master's degrees, one in Contracts & Acquisition Management from Strayer University. She holds an Administrative and Regulatory Law Certification from Florida Coastal School of Law. Yolanda is also a certified American Heart Association Instructor and a certified ALICE Active Shooter Instructor.