Regardless of the industry, every company requires certain items to keep the business operational. It could be something basic such as a light bulb or something complex like a sophisticated machine. Apart from these, they also need a range of services such as training and repairs to keep the staff and facilities up to date. The strategic process of ensuring that the purchases are providing added value to the resources is called procurement. There are several ways to ensure smooth procurement, including using procurement software.
How can a junior pro make an impact in the procurement industry?
Even today, most of the procurement is done the traditional way. However, a tech-savvy junior pro can use automation and technology to ensure better procurement services. Consequently, such a person can help the company to move from spreadsheets and emails to sophisticated procurement tech platforms to ensure better efficiency and speed. Procurement software can help with this.
Apart from that, entry level procurement professionals can use the following tips to enhance their team’s procurement performance.
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1. Develop strong risk management policies
Developing a strong risk management policy is critical because, in the present-day world, there is a vast array of digital disruptions, such as security breaches and system failures. These are in addition to the myriad of other unexpected events such as natural disasters or government policy changes that could interrupt smooth business processes. There is no dearth of threats/challenges a procurement professional must plan for.
A proactive procurement manager should know ahead of time the emergency procedures, plans, and the people responsible for various tasks, to ensure business continuity under all circumstances. A great way to go about this is to make sure that all the concerned people are informed about the risk management policies and incident response plans they are responsible for. They should execute the plans as and when required to ensure effectiveness.
2. Prioritise supplier relationships
A procurement pro should maintain strong relationships with the suppliers. There should be clear lines of communication and efforts to build trust. It is crucial to ensure that both parties are on the same page. The goals should be definitive and plans of action laid out.
Apart from evaluating the supplier contracts regularly for compliance and performance, the procurement professional should actively seek ways to improve relationships with the suppliers. Even a simple gesture of asking their opinion or asking for inputs on serving customers better can go a long way in relationship building.
3. Invest in the right supply chain talent
Procurement managers can improve supply chain efficiency, optimise workflow, and drive performance by making sure that the right skills and tools are being employed. This holds not just for the employees but also for the technologies and systems you invest in.
4. Assess KPIs
It is important to measure performances against key performance indicators. This will help in gaining a comprehensive understanding of the effectiveness of procurement operations and identify areas that need improvement. Be mindful of the fact that the indicators might change over time. So, this evaluation should be an ongoing process and is hugely helped by integrating the best automated procurement software.
Make the best of outsourcing opportunities
Sometimes, the best choice would be to outsource procurement. If the productivity and value can be increased through outsourcing, don’t hesitate to go ahead. Sometimes, enlisting the help of a consultant can result in better ROI as the company can benefit from the unbiased yet knowledgeable perspective pointed out by the consultant.
Conclusion
It’s not just technology that is rapidly changing, but the global trade systems and regulations too. Be ready to explore and accept change with an open mind. Learn about the most up to date procurement strategy best practices, and stay optimistic about the opportunity that comes your way to make the best of it!
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