Procurement Management: Do You Have Clear Goals?

For any organization, procurement is arguably the most important support function as it impacts almost all the major strategic functions. Almost every department is dependent on the procurement division procuring the necessary resources to carry out its day-to-day activities. This has made organizations look at procurement itself as a strategic function that has a direct impact on business operations and the bottom line.

For a procurement plan to be successful, it has to be goal-oriented. Organizations have to clearly lay down the goals that they want to achieve, which in turn have to be complemented by the procurement plan. Here are some sample goals that you could lay down:

Green procurement: If you are an organization that is conscious about your carbon footprint, one of the key goals that you can lay down is to make your procurement green, i.e., environmentally sustainable, by procuring goods and services that have minimal or no effects on the environment. Many organizations have already laid down their environmental policies and some have even gone further and vertically integrated with their suppliers so as to ensure environmental sustainability. Don’t you want to join them?

Continuous Innovation in the Chain: There is no one-size-fits-all in procurement. To meet its internal business requirements, each organization has its own procurement strategy. This means that there is always scope for improvement and innovation in procurement and the whole supply chain in general.

Organizations should actively and continuously seek to innovate their procurement processes and change with the changing times. They should be constantly monitoring their procurement process to find any irregularities and improve on them.

Transparency and Security: Security is an aspect of procurement that many organizations often underlook. It is important that the supplies arrive safe and secure, protected not only from damages but also from any nefarious activity.

Transparency of the procurement process should be an equally important goal as well. The procurement department should ensure that the whole process is compliant with policies and regulations. Transparency also eliminates the scope for fraud in the process.

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