Challenges in 2016 for Procurement Departments - Part 2

Strategies the Right processes which suites the culture of company:

As the matter of business growth, so does the procedure of processing. Time is cash. Speed in delivering results is force. From starting supplier contracts to final accounts payable, viable procurement procedures can accelerate the whole purchasing exchange—across markets, organizations, and boundaries. The faster and all the more efficiently a business can prepare production network knowledge and transactions, the more competitive it can become. If it can connect the transaction to the finance department, competitive advantage can only increase.

Here are some points which should be consider while establishing and implementing the best processes to get maximum indirect spend under management:

• Target 85 percent spend under management
• Tightly integrate your sourcing and procurement organizations
• Analyze and benchmark indirect spend
• Increase the frequency of sourcing events
• Assign dedicated teams to run sourcing events
• Assign dedicated contract and supplier management teams
• Identify key internal stakeholders and develop good working relationships

Deploy the right technology and start gaining the savings and efficiency:

Today, it is the purchaser, not the supplier, who decides long haul business achievement. Knowing where, when and how to purchase effectively, and productively, gives upper hand. Acquirement experts need to react instantly to economic situations keeping in mind the end goal to ensure organization interests. Innovation can highly affect proficiency, visibility and enhancing processes, and sourcing and procurement methodologies have been enormously improved by advancements around there.

Consider these idea starters around giving impactful innovation technology to work:

• Create a team and process to explore available technology
• Explore promising technologies such as spend analytics, eSourcing, and tail-end spend management
• End-to-end integration between technologies and sourcing and procurement teams is critical
• Support integration with dashboard technology
• The priority is the bottom line: be able to identify savings and impact

Agenda for procurement success:

Procurement can, and should, make a huge effect in success of any association. A strategy and road map must be devised for indirect spend under management under control, and core to that is having the right people, processes and technology in place. By putting resources into the right place, tapping specialize devices to accomplish greatest results and taking an integrated approach with regards to procedures, procurement can achieve its objectives and demonstrate its value to success.