Improving quality & efficiency through effective procurement methods
The efficient procurement of equipment, spares and other operating materials is crucial to the success of any business.
In today's increasingly competitive, cost conscious economic climate, every opportunity must be taken to improve corporate efficiency.
GFI Enterprises believe in working with our clients to identify areas where improvement can be achieved.
Every purchasing transaction has a unique set of criteria which should determine the best route to product for the progressive buyer.
Your Supply Choices
Directly from Manufacturers
Is it hard to believe that dealing direct with manufacturers can actually add to your costs?
There will always be certain situations where it may be best to buy directly from a manufacturer. If you have a regular and significantly large spend, you would expect and hope to receive excellent service, full technical support and advantageous pricing. If you are lucky enough to get all these things, you need do nothing more than occasionally review and monitor performance. However, if you do not have a regular or significant spend, it may be neither possible nor advisable to attempt to deal directly with a manufacturer.
A manufacturer may simply not allow you to open a direct trading account, if you do not have sufficient or regular spending.
Even if you can open a direct trading account, you will often be subject to manufacturers END USER LIST PRICES.
Also, if a manufacturer knows you have their equipment on site and that your circumstances are difficult to change, what incentive do they have to offer lowest prices?
So, how can dealing directly with manufacturers can actually add to your costs:
- Additional bank charges
- Possible advance payment needed
- Exposure to Currency Fluctuations
- Every order carries freight costs
- Your labour costs from sourcing, negotiating, buying, expediting, payment
- You incur communications costs. Telephone / Fax / E-Mail
Manufacturers will often only sell either from their existing inventory or from forthcoming production. This can create difficulties if items are required urgently.
Manufacturers are often large organisations with many different divisions and employees. This scenario can make it very difficult to get good service in respect to reaction times, deliveries and pricing if you are not a regular and or significant customer.
From Local Distributors or Stocklists
In many cases, distributors may feel they have a local monopoly on the supply of their products. This may encourage excessive pricing and or poor service levels due to complacency.
Local distributors will try to sell goods either directly from their stocks or on a lead time from the manufacturer. They may not have knowledge of other distributors, or may not be able to buy competitively, or at all, from other distributors because of industry politics.
GFI customise its purchasing services to suit your specific needs in terms of duration, scope and type of service required
Distributors may have agencies for a particular manufacturers products. It is then difficult for them to supply possible alternatives due to a conflict of interest. It also makes it difficult for them to assist engineers to find the best product for a particular application.
Distributors will only supply their products which normally cover a fairly narrow range of items, they do not offer a “Single Source Solution ” and the benefits this can provide.
Distributors are not in a position to benefit from regional or international price variations as they are tied to one purchasing point and a fixed market area.
Again, dealing with multiple resellers can actually add to your costs! How:
- Additional bank charges
- Possible advance payment needed
- You may be exposed to currency fluctuations
- Every order carries freight costs
- Your labour costs from sourcing, negotiating, buying, expediting, payment
- You incur communications costs. Telephone / Fax / E-Mail
Flexibility
GFI customise its purchasing services to suit your specific needs in terms of duration, scope and type of service required. Whether for routine operations or for special projects, GFI have the expertise, experience, and professionalism to handle your procurement requirements from the time you identify a need, to the moment materials are actually delivered to your facility.
The extent of our services can vary from being an occasional support vendor to being a sub-contracted, on-site department interfacing directly with the Engineering and/or Manufacturing departments, and handling all functions of the procurement process.
As GFI are not tied to one manufacturer or product type, we can help clients find the best option for their particular application. We act as an extension to your organisation and can help engineers identify and select a suitable product prior to involvement of the materials department.
Economic Sense
GFI Enterprises Ltd can obtain reseller prices, and can often find it easier to negotiate discounts, Why:
- If the manufacturer does not know the end user they do not know the strength of their position. This gives GFI leverage on pricing
- We have local relationships with key manufacturers and suppliers
- We have years of experience in our core sectors/industries
- Possible repeat business for multiple clients can facilitate further economies of scale
As a “Single Source” buying option, GFI Enterprises can help cut your costs in many different areas. We help with the consolidation of bank charges and freight charges which are particularly significant with international transactions. We take away the need for you to make advance payments to occasional or new vendors with whom you have no credit facilities. We can protect you from currency fluctuations by quoting in your preferred currency and if need be incorporating currency hedging techniques. We help cut your time and labour costs by assuming responsibility for sourcing, negotiating, buying, expediting, inspection, shipping and payment. We help reduce your communication costs associated with telephones / fax and e-mail.
Researching the marketplace to guarantee the best product at the best price
In the modern business world, all organisations are forced to limit overheads, including Personnel. As a result, purchasing staff can be subject to extreme pressure especially during peak periods of activity. Time restraints can then make it virtually impossible for existing staff to fully maximise the efficiency of your Procurement. At GFI we have the time to fully research the marketplace to guarantee the best product at the best price. We also have the resources to properly expedite your orders to produce goods on time, every time facilitating "just in time principles". By helping relieve the workload on your staff, we allow you to concentrate on your core business activities and maximise your returns.
Modern business models all highlight that the sub-contracting of peripheral functions helps organisations concentrate on their core business, and improve profitability. It is the same as sub-contracting for production, accounting, logistics or any other services. SPECIALISATION WORKS !
Widen Your Options; Go Global
The globalisation of markets not only permits access to products worldwide, but also offers the opportunity to take advantage of regional sales strategies of manufacturers and suppliers.
Often better and/or cheaper products can be found elsewhere in the world which can improve profitability and/or quality of the end product. However, international business comes with its own difficulties and risks. Time and language differences make it hard to communicate effectively with overseas suppliers. Also, dealing in multiple currencies can expose your organisation to high financial risks and unforeseen costs. Add to that, the problems of agreeing payment terms with multiple overseas vendors, plus the difficulty of arranging adequate packing, shipping, insurance and customs formalities and it is easy to see the benefits of co-ordinating overseas purchases using GFI Enterprises Ltd as a single source.
GFI have established a network of associate companies located in many of the key international markets. They provide local cover and indigenous language personnel to further enhance our services.
GFI may have knowledge of other sources or stockists located regionally or internationally who could help satisfy an urgent or vital requirement.
Service Levels
GFI have expert in-house staff with many years experience of product supply specifically to the Oil, Gas and Petrochemical sectors worldwide. The years of experience gained by our staff and our commitment to service differentiates GFI from other suppliers. We bring product expertise along with the single source and independent benefits which can benefit engineering and materials professionals..
GFI can offer expediting reports for all orders to help plan special projects, shut-downs or even day to day business.
GFI can inspect prior to shipment from the country of origin. This picks up any shipping errors as early as possible plus allows us to monitor that suitable packing has been used. It also helps reduce transit damage and ensures compliance with ( WPM ) Wood Packaging Regulations worldwide.
GFI take control and responsibilty of all shipping and logistics issues to ensure timely and economic arrival of orders, consolidating freight costs.
