Procurement
is an important part of your business so you need to undertake regular
procurement analysis to ensure that you are making the best use of your hard
earned money. Procurement analysis is the analysis of what goes on in your
purchasing department, are they keeping to the purchasing strategy and are
inventories being kept to the optimum levels. With respect to suppliers,
are the best suppliers been chosen and are they offering the best prices and
terms?
Whatever
the size of your company you must analyze costs and inventories. As you
become larger and your purchasing needs become more complex, you should be
analyzing delivery times, maverick spending and whether you are making the best
use of your suppliers. Let us look at each of these procurement analysis
needs individually.