In this episode, Monica joins the podcast to discuss common procurement challenges faced by Managed Service Providers (MSPs). Introduced by a mutual client, Monica has focused on the procurement module in ConnectWise, which directly impacts the effective production of management accounts. Monica highlights the top three procurement mistakes MSPs make: overcomplicating the process, not understanding responsibilities, and failing to complete the quote to cash process. She offers practical tips, such as simplifying procurement, using spreadsheets initially, and effectively managing vendor relationships. The conversation also explores when to invest in PSA tools, leveraging procurement systems for better vendor communication, and balancing inventory to streamline operations. Monica shares insights on managing client expectations and the benefits of treating procurement as a profit centre rather than a cost centre. The episode concludes with advice on vendor score carding and the importance of a structured procurement role, emphasising a disciplined yet flexible approach to procurement.
00:00 Introduction and Guest Welcome
00:28 Understanding Procurement in MSPs
00:55 Top Procurement Mistakes
01:06 Simplifying the Procurement Process
02:15 The Role of PSAs in Procurement
03:10 Spreadsheet vs PSA Debate
03:28 Responsibilities in Procurement
05:33 Integrating with Vendors
06:18 Building Supplier Relationships
07:23 Effective Procurement Practices
08:08 Managing Procurement Responsibilities
10:08 Procurement Best Practices
11:52 Training and Expectations
14:18 Handling Urgent Client Requests
17:28 Vendor Score carding
22:24 Stock Management for MSPs
24:39 Monetising Procurement Services
29:00 Conclusion and Contact Information
Connect with Monica Ozaruk on LinkedIn by clicking here –https://www.linkedin.com/in/monicaozaruk
Connect with Daniel Welling on LinkedIn by clicking here – https://www.linkedin.com/in/daniel-welling-54659715/
Connect with Adam Morris on LinkedIn by clicking here –https://www.linkedin.com/in/adamcmorris/
Visit The MSP Finance Team website, simply click here – https://www.mspfinanceteam.com/
We look forward to catching up with you on the next one. Stay tuned!
