In the busy business world, contract purchasing can help your company manage costs, build stronger supplier relations, and improve operations. Contract purchasing is defined as the process of acquiring goods or services by establishing agreements with suppliers. The most common benefit to going into a contract purchase agreement is the pre-negotiated prices. This helps your company not to be taken by surprise when making these purchases. Other benefits include details of quality standards, delivery schedules, and the freedom to be tailored to meet the specific needs of your company.
Here at Southwest Solutions Group (SSG), we offer more than just a competitive price, we provide you with decades of knowledge. We have many different purchasing agreements, depending on your industry and product needs.
In this blog, SSG will be talking about some of the steps you can take when implementing a contract purchase and the benefits of purchasing through one.
Steps to Implementing Contract Purchasing
Your business should consider several important steps prior to entering into a contract purchasing agreement. Below are some of these steps along with guidance on how to effectively carry them out.
- Needs Assessments: First you need to identify what you are looking to get out of a contract purchase and the volume, how often, and quality of what you need to purchase.
- Supplier Selection: Once you assess your needs, you can see which suppliers are a part of contracts you’re a member of. Here at SSG, we offer reliability, quality products and services, and great costs.
- Drafting/Statement of Work: After you make the decisions listed above you then can draft an outline of your needs, so it’s tailored to helping your company benefit. These drafts will outline all the terms and conditions agreed upon. Including objectives, scope, deliverables, performance criteria, and more.
- Signing: Once drafted, you can sign the agreement and obtain the approvals necessary to make it happen.
Benefits of Contract Purchasing
As talked about above, there are many benefits to having contract purchasing agreements. Here are some listed out and how they could potentially help your business.
- Cost Savings: Creating long-term contracts helps open the door to more available discounts since your company is committing to volumes of orders. It also sets a stable price for your company to purchase from SSG. That way if price changes do occur, you are not specifically affected. This can help your company have better budgeting and cost management.
- Supplier Relations: When making long-term purchasing agreements you are making an agreement to use the same supplier. This fosters strong and stable relations with that company, in turn enhancing the trust and cooperation when working together. This also will lead to smoother service when coming to work on or installing the purchases.
- Operational Transparency: These well-drafted contracts provide clear expectations and therefore take away the risk of misunderstandings since everything is laid out. With these specific issues fixed and laid out, it’s easy to know exactly what you are going to be getting. This includes what is being bought, for how much, and what the conditions are for purchasing.
What SSG is a Part of
SSG is a part of a wide range of products and services purchasing agreements. From agreements that benefit schools and universities to agreements tailored towards healthcare, there is one ready for your business. By establishing these long-term contracts your company not only will secure competitive pricing and consistent quality but also build strong, collaborative relationships that will enhance service reliability and operational efficiency.
An example of a contract purchasing agreement SSG offers is Southwest Solutions Group & Equalis. This offers many different products for virtually every market. Including items such as wire shelving, carts, locker equipment, SMART locks, pallet rack safety systems, machine guarding equipment, and much more. With an agreement like this, you will be getting a 30% to 50% discount off list price offerings, including installation and freight.
If you're in a state/local government, higher education, K-12 education, or a nonprofit organization, and looking for a contract with Spacesaver storage SSG’s purchasing agreement with OMNIA Partners is perfect for you. These contracts are obtained through a Request for Proposal (RFP) and are awarded if your company meets the financial and nonfinancial criteria.
If your company needs healthcare solutions, a Vizient purchasing agreement is perfect for you. Vizient currently provides over 66,000 members with advanced services and purchasing needs. At SSG we assist healthcare professionals with designing and planning innovative solutions. We know about the latest methods and technologies to help you store more in your facility’s space. Purchasing through a Vizient contract will make the procurement process easy and the result is higher optimized supply chain operations and lower supply costs.
Implement a Contract Purchasing Strategy Today
Numerous benefits can arise when implementing a contract purchasing agreement into your business. At SSG we are focused on helping you save costs, have effective operational transparency, and build relationships with your company. By leveraging our expertise and the purchasing agreements we offer at SSG, your business can achieve long-term success and efficiency.
Embrace the power of contract purchasing today and let SSG be your trusted partner in driving operational excellence and sustained growth. By creating a contract purchasing agreement, you can invest in a smarter way to manage your procurement needs, reducing the risk of error and enhancing your operational capabilities. Call 800-803-1083 and talk to a team member today to see what we can do for you!