5 Signs of Efficient Procurement

Is your procurement department delivering efficient procurement? From exciting global companies down to innovative SMEs, procurement is a critical strategic function which can deliver real value for a business. It doesn’t matter how big your organisation is, the fundamental challenges procurement professionals face are often mirrored across a wide range of sectors. So how does your procurement operation compare?

Ensuring gold standard procurement isn’t just a matter of professional pride, it’s about delivering reliability and efficiency at lowest costs. According to global business consultancy The Hackett Group, organisations with ‘world-class’ procurement departments operate at around 20% reduced cost and require 27% fewer employees than less successful departments. Here are five key strategic considerations to help benchmark whether your procurement department is working as smoothly as it could be.

  • You have clearly defined goals

Clearly defined procurement goals not only set out targets for your own department, but help you communicate the benefits of those targets to management and c-suite stakeholders. Ensuring you set suitable goals, and demonstrating you can meet them, will generate on-going support from the decision makers whose continued confidence is key to your success.

  • You have established procedures which you adhere to

Established and transparent procedures facilitate a frictionless procurement process by setting out the operational model for your procurement operations. Equally importantly, a set of clearly defined procurement procedures will deliver increased transparency for wider employee groups, helping reduce the potential for maverick buying and inappropriate spends.

  • You’re leveraging value from understanding

A detailed understanding of supply chains and costs is crucial to a well-functioning procurement department, but equally critical is what you do with that data. Applying your understanding of your procurement processes to leverage reduced costs and preferred rates with key suppliers is critical for any department that aspires to be world-class.

  • You have embedded smart e-procurement practice

E-procurement offers an opportunity to deliver even greater insight of your procurement processes, empowering you with more data to leverage smart procurement decisions. Solutions like Procurehere further enable you to streamline workflows, increase transparency, reduce costs, and decrease time taken for procurement tasks. Implementing these solutions is an important step, but ensuring you’re delivering world-class procurement means enabling and empowering employees to understand and utilise the full capabilities of these software solutions.

  • Supply chain management is key

The success of supply chain management isn’t only down to costs, it can involve a complex set of factors such as reliability, on-going relationships, potential for innovation, and much more. Ensuring supply chain management is at the heart of your procurement operations is essential. E-procurement solutions can be part of the solution in ensuring readily accessed data and easily organised interactions and meetings, but equally important is understanding that encouraging and acting upon feedback from suppliers can be a crucial part in improving your own processes.

Are you on track for procurement success?

The important thing to remember is no process is static, there’s always room to evolve and adapt our operations to improve on our performance. These 5 key indicators offer a benchmark for vital areas to explore, and like any business process it’s just as important to get those core processes right as it is to innovate new solutions.

Procurehere offers a user-friendly solution that will help you leverage the opportunity inherent in that evolution. Our cloud-based, e-procurement software delivers greater insight, increased transparency, and improved efficiency for your procurement processes.

Want to know more? Explore how Procurehere can help open up the opportunities of world-class procurement for your business.

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