Procurement transformation has become the mantra in today’s globalised world, where technology plays a major role. It refers to realigning resources so that they offer better results and ensure higher profits.
As a procurement professional, you should be aware of different ways to bring about procurement transformation; it will open up more opportunities for you to excel. Here are some strategies to help you:
Get to know your suppliers
You must get to know your suppliers to forge a long-term relationship with them. Understand their strengths and weaknesses, so that you know which supplier to call on should an emergency arise, or if you need quick supplies. Once you know your suppliers well, you will be able to improve the efficiency of the procurement process and also ensure more savings for your organisation.
Make suppliers genuine partners
Customer demand can vary without warning, so you must ensure that you are ready to manage changes in demand as it will have a significant effect on the supply chain. The best way to ensure you are ready is to share requirements with suppliers in a transparent way. When you do this, the supplier will be able to provide solutions, enabling the organisation to meet consumer demands without a hitch.
If your organisation has several manufacturing units or outlets, it can be cumbersome to manage overlapping supply bases. In such cases, the best way forward is to aggregate spend. It will not only boost the company’s buying power, but it will also improve procurement efficiency and lead to higher savings.
Make use of the right technology
Technology for procurement is ubiquitously available. However, the key is to use the right technology to help analyse and crunch numbers. It will reduce sourcing time, minimise errors, and also ensure a smooth procurement cycle. Above all, it will ensure you have enough time to think strategically and come up with solutions to mitigate risks in the supply chain.
Procurement transformation is here to stay, so if you want to become a sought-after procurement professional, educate yourself and understand the different ways to bring about this change.