Struggling with soaring sourcing costs in the UK? You’re not alone.
Recent data shows UK SMEs faced a 23% increase in raw material costs and a 300% surge in energy prices since 2021.
When our manufacturing business hit these challenges, it felt overwhelming.But through strategic sourcing transformation, we managed to turn things around.
Here’s what worked for us:
1. Data-Driven Supplier Partnerships
We analyzed spending patterns across 50+ suppliers and negotiated long-term contracts with volume commitments. This stabilized prices and secured priority delivery slots.
2. Digital Procurement Implementation
Implemented e-procurement tools to automate 80% of routine purchasing tasks. This reduced processing costs by £12,000 annually and improved order accuracy by 95%.
3. Supply Chain Diversification
Built relationships with local suppliers to reduce shipping costs and Brexit-related delays. Created a balanced mix: 60% domestic, 40% international suppliers.
Result?
Our sourcing costs dropped 18% in 6 months. On-time deliveries improved from 75% to 92%. Best of all, our carbon footprint reduced by 25% due to localized sourcing.
This experience taught us that cost challenges aren’t just problems – they’re opportunities to build a more resilient business model.Ready to transform your sourcing strategy? Start with a spending analysis. Map your supplier network. Identify your biggest cost drains.
What sourcing challenges are you facing? How are you adapting to the new normal