I want to buy something, so why are Procurement slowing me down..?!

In everyday life, deadlines are extremely important, however creating an unnecessary risk in order to achieve a deadline is not okay. In the world of business, this principle is the same. All businesses will require goods or services to be provided by suppliers at some point, and quite often they will find that they are always needed yesterday!

Urgent requirements will creep up now and again, but it is essential that when they do, they are managed efficiently and effectively, mitigating any possible risk.

This is where procurement can help, and with all honesty, procurement do not intentionally act as a speed bump in the process. Procurement are a business function that are vital to an organisation, ultimately responsible for the ownership of sourcing, acquiring and management of goods and services provided by suppliers.

Yes, procurement will do anything they can to pinch a penny here and there, but the fundamental goals of the procurement function reach far wider.

• Cost savings: Via experienced procurement professionals, the procurement function will lead the sourcing activities to ensure that the “best value for money” (not the cheapest) route of supply is realised and established.
• Quality: Procurement are responsible for ensuring that the quality levels of purchased goods and services meet the required business criteria or legislation. Poor quality can lead to failed performance, additional cost, and delays due to inefficiencies furthermore impacting the business bottom-line figures.
• Increased market competitiveness: An efficient procurement sourcing process will identify and consider market developments. Whether that be developments in the specific goods and services needed, or gaining an understanding of how competitors are achieving similar required outcomes.
• Risk mitigation: Do you truly know who you are buying from? Do you have factual evidence that your supplier is a legitimate organisation, who are financially stable and physically capable of providing you with your requirements via an ethical source? Do you have sufficient Terms & Conditions in place to protect you from any issues occurring with the items you have received? Procurement are responsible for implementing controls to mitigate any supply risks and issues that may arise.
• Brand image: How often do you hear the acronym ESG? It is procurements responsibility to ensure that the goods and services provided by suppliers are delivered via environmentally friendly and sustainable supply channels. Cutting corners on your supply chain can damage your company’s reputation & limit further opportunity.

Were you aware of the role that procurement play? Reach out to your procurement function at the earliest opportunity, the earliest sniff of an upcoming opportunity, let them work to achieve a sustainable and efficient supply route, and remember not to cut corners.

Do get in touch with us if we can help with any of your needs or offer advice/support on your procurement function and needs.

Richard Fotheringham - 7 Step Solutions