And e-auctions are a fantastic way to negotiate even quicker with as many participants as they like.ĬRH is also proactive when it comes to mitigating risk and being compliant. The team runs tenders and negotiates with suppliers for complicated sourcing events.Į-sourcing helps CRH speed up efforts without compromising on the number of suppliers they want to reach out to. The company has built a center of excellence for procurement to make sure they have the right people and systems in place. But CRH believes that a proper foundation allows their business to act quickly to seize opportunities. Recent global events have made many organizations less proactive, more reactive. Perhaps you could do a quarterly negotiation for the particular elements that are causing problems and get the supplier to commit to longer terms for the other elements. If that’s the case for your organization, CRH recommends getting a cost breakdown and splitting up the contract. Many suppliers won’t commit to longer than three months.

Rising costs are one of the biggest challenges facing procurement today. See How They Saved Millions Lesson 1: Tackle inflation With a revenue of over $30 billion, and 77,400 employees at 3,000 sites in 28 countries, there’s huge potential for gain when processes align and organizations are working together.ĬRH saved millions of euros with smarter sourcing. As employees will tell you, they’re probably the largest company you’ve never heard of. Keep reading for eight lessons we can learn from CRH.ĬRH manufactures and supplies building materials. CRH, the world leader in building materials and headquartered in Dublin, shared insight into building an agile procurement function to support wider business priorities. In the webinar Improving business continuity with agile procurement, hosted by procurement leaders, we heard some encouraging examples of how to achieve these goals. Since the pandemic and the war in Ukraine, businesses have new priorities such as securing supplies in challenging markets, diversifying supply chains, or gaining long-term commitments from suppliers. Procurement is no longer simply about negotiating for the lowest cost.

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