How to slow down rising costs

Does your supply chain appreciate your business? Are you getting the best value? How do you measure it? Scott Partington of Golf Management Group (GMG), answers these questions.

To begin effective supply chain management due diligence at the outset is key and can avoid bigger problems once engaged with suppliers. Simple checks such as testimonials, review sites, time in operation, industry experience / qualifications / associations can be established very easily. Call around your network of peers and / or affiliated bodies to garner their experiences, you may well find that you have access to enhanced terms of business via certain affiliations.

Undertaking a supplier evaluation is an essential part of your management operation and important to ensure your suppliers are aligned to your business goals.  Factors such as cost, reliability, customer service, delivery, order accuracy and more recently the suppliers’ social, economic and sustainability strategy are all important issues when assessing if they are a good fit for your club.

Do you undertake a formal tendering process for products and services or has a cost comparison been undertaken within the last three years to ensure competitive terms or do you roll year on year? (Suppliers who know you are not doing this can be inclined to take advantage of you in terms of price and service).

Ask yourself these simple questions:

• Does the supplier offer a reliable service?

• Is the supplier aligned with our business goals?

• Does the supplier value your business?

• Do they offer a regular review of your business relationship / performance?

• Are you receiving value for money?

• Do you have an effective process in place that alerts you to the dates when service contracts are due to expire and how much notice is required?

Every operation will have different requirements, however the principles of supply chain management will generally be the same.

GMG can help you with this whole process, making sure you are getting the most competitive and suitable deals, whilst spending the minimum amount of your time securing them. It doesn’t just stop there, once you have a GMG supplier in place, we help to keep ongoing price rises to a minimum. For example, we have recently managed to mitigate an industry wide 11 percent annual price increase on waste collection down to only 2.5 percent for all of the clubs that work with GMG.

Golf clubs also have complimentary access to www.contracts-manager.co.uk, a vital management tool designed to manage all your service and utilities contracts in one easy to use online portal, sending reminders of contract renewal dates and notice periods, ensuring you do not roll in to out of contract rates.

Mike Wells, managing secretary of York Golf Club, said: “James and the team at GMG Energy Club have recently been helping with our gas and electric contracts and I am delighted to say they secured us significant savings in both cases on new three-year contracts. I have a happy finance director who can now rest better at night, what more could I ask for?; thanks James and team.

GMG have previously provided help negotiating new waste disposal contracts and we are also discussing solar panel installations as well. If any other club managers are wondering where to go for help in these things, GMG have certainly done us proud and I am sure could help you.”

For more information, visit www.golfmanagementgroup.co.uk