Procurement is a key strategic activity which is instrumental in delivering corporate objectives, but, all too often, it is a neglected corner of the business.
To transform procurement from being a tactical and fragmented activity to a strategic and collaborative one, there are five key elements which need to be addressed.
These elements should be aligned to corporate strategy and underpin risk management.
When embarking on procurement transformation, remember that technical knowledge of procurement on its own is insufficient to succeed. It is essential that the project leader has the appropriate soft skills, such as (but not limited to) interpersonal awareness, concern for impact and strategic thinking.
The more complex the organisation, the more this is true. Strategic procurement relies not only on procurement personnel working collaboratively, but also key stakeholders internally and externally working positively with procurement.
Should you need help in transforming your procurement activity, please do not hesitate to contact us.
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Increased Profit and Reduced Costsby improving benchmarking, supplier intelligence and management and reducing the overall cost of ownership.
Reduced and Managed Riskby identifying, understanding and defining the risk associated with each purchase and mitigating against it
Improved Supplier Performanceby identifying the appropriate relationship with each supplier and implementing proper governance accordingly
Improved People Skills and Knowledgeby investing in their training and development through top-level support for, and recognition of, strategic procurement and its essential link to the delivery of corporate strategy at the highest level
Improved Customer Satisfactionby shortening lead times through supply chain optimisation and improving the quality and service of the goods and services supplied.
Increased Competitive EdgeResulting from the above and the adoption of strategic sourcing.read more >