Buyers: Their role in French competitiveness

The non-production purchasing lever is underused

Founder and Director of Buy Made Easy, Olivier Audino notes:” During my professional career dedicated to purchasing, I observed that the non-production purchasing lever was rather underused. Wrong! “In fact, in industrial companies, purchases represent more than 50% of turnover, including 20% for purchases excluding production or general expenses. That's almost twice as much as labour costs. If the company reduces its purchases by 5%, it gains twice as many margin points as by reducing its payroll by 5%. And can therefore quickly increase its margin without looking for additional turnover and especially without laying off employees.

The buyer has changed his position: from Cost-killer With catalyst

Today, no one has an interest in a supplier disappearing: the Cost-Killing has shown its limits in the medium term. By collaborating with the supplier in advance, to search for ways of innovation and productivity with him, the buyer develops another dimension of his expertise.

It is no longer a question of typing in the supplier's margin, it is a question of helping them to progress, to increase their competitiveness, and therefore to make their service or production more efficient. ”, assures Antoine Tomi, associate consultant at Buy Made Easy.

Purchases measure supplier risk

In addition to reducing costs, procurement has an increasing role to play in controlling supplier risks, whether financial, societal or environmental. Indeed, international regulations increase the responsibility of the client with regard to the failures of its suppliers. A growing complexity of risks at the origin of the VigiLegal supplier risk prevention solution:” With its centralized online data and its network of experts, VigiLegal helps its users to deal with all legal constraints and assists them methodically and effectively in controlling their supplier risks. ”, explains Olivier Audino.

Olivier Audino, CEO
Graduated from Grenoble School of Management.

Before founding Buy Made Easy, Olivier worked for 7 years in the Purchasing Department of General Electric, United Technologies and the SEB Group.