The business of procurement is dynamic and challenging, more so with the environmental socio-political challenges that are gripping the modern world of logistics & supply chain.
Continuous improvement has become a necessity rather than mere strategy and therefore procurement professionals will have to take a lead to leverage their organizations on to a path of sustainability and profitability.
Below are some ways that procurement professionals will have to adapt and adopt to make their presence felt in their organizations as well as be acknowledged as leaders driving the business bottom-line and not just delivering results.
Procurement has to begin with:
1. Defining the Need:
Clearly identify the need you want to resolve. Make sure you understand the purpose and scope of the need and attempt to better the provided specifications for the stakeholders.
2. Gather Information:
Collect relevant specifications and browse the sourcing data to select the right suppliers who can help you better understand the need.. You may need to conduct research, draft contract, select suppliers and integrate the various department stake holders to analyze given existing data.
3. Analyze Information:
Examine the information you have gathered and look for better alternates based on your market and spend analysis that will help you identify gaps to avoid and mitigate any potential hiccups to lead to timely deliverables..
4. Offer BATNA:
Brainstorm potential alternative solutions to the needs. Evaluate each option and choose the best supplier on the basis of LCCS and NOT price alone.
5. Invite the right suppliers:
Seek the chosen suppliers and make sure everyone involved in the procurement understands their roles and responsibilities.
6. Lead with your Contracts:
Administer your defined contractual term in the solicitation and ensure that 85% of your terms remain unchanged. Prepare your WAP against the specific goals or metrics.
7. Ready for Negotiations:
If the invitees are not ready to settle to your requirements, work on finding the elements that will boost your considered non-negotiable and create a win-win for all parties involved in the procurement. Identify what is not working and modify your approach. Flexibility is the key.
8. End-to-End Metrics:
Reflect on the learning’s and identify key areas for improvement. Use this knowledge to continually improve for your future requirements developing your professional skills and team approach. KAIZEN is the norm. You are only good as of yesterday. Every requirement is different, Procurement Business Continuity and Supplier Development is a continuously improving methodology.
Prepare for All Categories – What is needed just-in-case & Only Order when needed and what’s needed. This will lead you to be more effective at addressing challenges and achieving your business KPI’s & KRA’s.
Remember Procurement & Supply Chain professionals are the ‘Real Heroes’ of any organization. You deserve a Big Token of Appreciation for your Efforts and Strategic Mind-Set.
Percy has been a part of many transformational initiatives and acknowledged for developing High Performance Retail Operations and Supply Chains while contributing to Best Practices implementations in Human Resource, Business Continuity Development, and Sustainable Procurement & Distribution.
As a seasoned retail professional with B-2-B & B-2-C has been acknowledged in delivering Customer Excellence in highly stimulating and dynamic markets across the globe.
By Percy Engineer
Senior Director – Academics | Blue Ocean Academy
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