Blue Ocean Academy has conducted a free webinar on the topic ‘Best Practices in Procurement’. While the procurement function is changing at a fast pace, it is important for purchasing professionals to understand the changing trends and implement the best practices in their field. Around 70 professionals attended the webinar which made them realize the need for futuristic thinking. The speaker gave real-life examples based on experience and the future of procurement.
The webinar was facilitated by Percy J. Engineer, who is a seasoned professional highly regarded as an influencer and a facilitator of change. He is an experienced trainer acknowledged for creating business process improvement. He has been a part of many transformational initiatives including vendor sourcing and setting up new Procurement Policies & Procedures in a corporate career as a Country Manager spanning over 20+ years.
Following are the important points discussed in the webinar:
Purchasing is the process of obtaining goods and services from outside sources in a legal and ethical manner. It includes both procurement and contracts administration. According to Porter, purchasing is one of the four support activities that contribute to the competitive advantage of a business.
Ways to ensure success in procurement
- Get ahead when it comes to managing volatility
- Take the next steps to digital transformation
- Focus on deeper supplier relationships
- Deliver value that goes above and beyond
Best practices in purchasing
The purchasing function is undergoing a lot of changes with the passage of time. It has evolved from reactive buying to proactive buying. It is no longer considered a buying activity. Instead, purchasing is an important management function that adds value to the organization. There should also be a mutually beneficial relationship between the purchasing professionals and suppliers for a better outcome.
Best practices refer to the activities that are superior to the other alternatives because it is more effective to deliver a particular outcome. The following are some of the best practices in purchasing that comes under proactive buying.
- Purchasing avoids defective supplies
- Problems are shared responsibilities
- Total cost and value are key variables instead of price
- Buyers and suppliers contribute to the specification
- Emphasize strategy
Purchasing professionals must not be mere managers, they must become respected leaders. They have to implement these best practices if their function and their department have to be respected. A leader is the one who removes obstacles and provides resources to the organization. They need additional knowledge and tools to become leaders in their field.
All organizations wish to achieve world-class standards. How can you maintain world-class standards in purchasing? It requires deliberate efforts from your part to raise the bar in your operations. The first step is to find the best suppliers. While choosing them, look for those who strive for continuous improvement, use cutting-edge technology, and are adaptable.
Qualities of a world-class purchaser
- Team management
- Decision making
- Quantitative objective analysis
- Negotiation skills
- Strategic thinking skills
Procurement is an integral part of the organization. Procurement professionals must encourage communication between different departments so that they can streamline operations. Professional training and certification are inevitable to gain an in-depth understanding of procurement and to become leaders in your organization. It will also help you to explore several hidden opportunities for innovations in procurement which can transform your role and ultimately your organization.