Profit is in the Purchasing
Business owners obsess over sales. "If we sell 10% more, we will be rich." But increasing sales is hard and expensive. Reducing costs is entirely within your control. A 5% reduction in procurement costs can have the same bottom-line impact as a 30% increase in sales. This is where supply chain optimization services shine.
Strategic Sourcing vs. Buying
Most SMBs just "buy" things. They accept the vendor's price list. A Procurement Consultant practices "Strategic Sourcing." They consolidate volumes across departments to get bulk discounts. They benchmark prices against the market (you might be paying 20% over market rate without knowing). They re-engineer contracts to improve payment terms (cash flow!). Sometimes, a turnaround specialist for failing business starts exactly here by stopping the bleeding in procurement.
The Savings Audit
Bringing in an expert to audit your spending from raw materials to office stationery is often a "no-cure, no-pay" engagement. If they don't find savings, you don't pay. It is literally found money. It transforms the procurement function from a cost center into a profit contributor.