PROCUREMENT OPTIMIZATION BLOG

With school back in session, it is always a challenge to work out a routine to get everyone dressed, lunches made, bags packed and kids out the door to the bus.  The early morning chaos is enough to make every professional flustered and grumpy.  To streamline the morning tasks in my house, we develop a simple routine with standard tasks and rules that everyone must follow to make the morning go smoothly.  Things like the TV getting turned on can cause distractions and delays that can turn any morning into a hectic dash.

Are your procurement processes also chaotic with a lack of rules and policies to drive the process effectively?  Streamlining the procurement process can be thought of in the same way by evaluating value added tasks, eliminating distractions and positioning your company to hit its goals.

Identifying unique steps in the procurement process will help pinpoint unnecessary steps and develop a process that is standard and efficient.  Cut out manual steps, ensure approvals are streamlined and develop a standard set of policies and procedures to follow for every purchase.  Steps being performed outside of the system should be incorporated into the standard process.  Standardization will also help to cut out the distractions and the noise that can occur as negotiations and approvals proceed with the procurement process.

To fully optimize procurement and position your company to achieve its ultimate goals, evaluate spend categories and develop a wave plan to get more spend under management.  By identifying your preferred suppliers in each category, they can be prioritized and onboarded into your streamlined procurement process to take full advantage of the efficiencies put in place.

With streamlined processes and more spend under management, your company’s procurement team will be working together like a well-oiled machine to save money and focus on strategic initiatives.

Julie Floyd

Principal