To reach the ideal scenario, where the entire procurement system is effectively streamlined is a goal many wish to attain. As confusing the process of finding the right suppliers and getting the spend analysis in place might seem, striking a balance between the two is a herculean task for sure. Being experts in procurement plans, we bring you a very close insight into what an ideal procurement system look like.
Disrupting the chaos
Lining out your business goals and aligning it with functional strategies can be a daunting task. Add to this the dynamic supply market scenario, and the constant pressure of spend analysis management – what you get is a perfect chaotic environment to work in. But if you start analyzing things one step at a time, the chaos can be easily disrupted, and order brought back to the process. An ideal procurement system would thus involve:
- Building a comprehensive supplier pool
- Clarity on bid specifications and quality management
- Transparency in sourcing, focus on supply chain enhancement
- Global sourcing and inventory optimization
- Green purchasing and accurate invoicing
One major roadblock which has a huge negative effect on the entire procurement process is a lack of a comprehensive supplier pool. Often it has been noticed that procurers hardly have any in-depth information on suppliers, and how rarely they move on to new suppliers to meet their requirement. Sticking with standard suppliers, though sounds like a ‘safe’ decision, it hinders your chances of meeting your requirements in a cost-effective manner.
Bid specifications and quality management are the next links in the chain of a decent procurement strategy. While clear bid specifications make it easier to know where to draw the line, better quality management would see to it that cost to the company is brought down substantially. Similarly, a great deal of care needs to be taken on sticking to a transparent sourcing of the suppliers. A lot of confusion and maverick spends are due to the disparity between bid specification, transparent sourcing, and inventory optimization.
Lastly, the idea of an ideal procurement system is incomplete without going for green purchasing and accurate invoicing. Along with bringing down the carbon footprint, green purchasing boosts the market value and goodwill of the organization.
Entrepreneurial skills – Adding an edge to the procurement system
The key to any innovation-centered procurement is adding the element of entrepreneurship to the entire process. With our extensive knowledge and experience, we can assure you that right entrepreneurial skills go a long way in giving your business the much-needed edge.
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