Managing the Cost of Growth
Growth carries with it its own scalable costs. Controlling and managing those costs is necessary in order to manage working capital.
In a recent article on BanklessTimes.com, Matt Clark, COO of Corcentric, spoke about the need for companies to address the challenges that come with growth in their business, often in areas that are not regarded as germane to their core business.
If you’re a clothing manufacturer who is selling more apparel, then you need additional raw goods and machinery to produce your core product. However, that growth also affects those items that enable the day-to-day operation of your business; things like office supplies, uniforms, printers, etc. As your business scales up, so does the need for indirect spend on these types of products.
But as the article points out, indirect spend is often decentralized and delegated to junior staff, making it the area of finance with the least oversight. However, as your business grows, so does your need for a wider supplier network…and that can provide opportunities for great savings…if you know where to look.
Many companies don’t realize that the information they need may be hiding in plain sight, in their procurement and accounts payable data. Many organizations lack the internal resources to identify, extract, and analyze the relevant data, making partnering with a solution provider a very viable alternative. That provider will find the areas where savings can best be realized…but identification is only part of the solution.
In the article, Matt details how Corcentric has developed an expansive supplier network for indirect products and services, negotiates volume discounts with those suppliers, and offers the savings to Corcentric’s customers. But the services go well beyond that and include benefits for both buyers and sellers.
See how Corcentric takes on credit risks that benefit both customers and their suppliers by reading the full article.