HOW WE WORK
Shifting the Focus from Transactional to Strategic
Sometimes the procurement organization gets caught up processing an endless number of low value transactions. Buyers add more value when they are focused on the larger more strategic spends, or working jointly and cooperatively with internal customers and suppliers. It’s not the quantity of work or number of transactions processed that is the measure of a good buyer. Instead it is the quality of careful analysis, thoughtful strategy, and flawless sourcing execution that should be used to judge effectiveness in the procurement area.
Enhancing Transparency and Control
Optimal transparency to spend is usually a key feature in Best in Class procurement organizations. It is equally important to have visible work flows and a clear understanding of transactional activity. Visible transactions and work flows can help uncover process inefficiencies and other control weaknesses.
Improving Satisfaction of Budget Owners and Suppliers
Being fast to market is crucial to a business that sells goods and services. Being fast is critical in procurement, too. Speed or the lack thereof can influence behaviors and cooperation, and may mean the difference between success and failure in a procurement organization. The truth is, people don’t like to wait and are happier when they receive faster service. Suppliers also need fast and regular feedback. Creating situations where buyers spend more time with suppliers is another important feature in our unique service offering.
Establishing Robust Sourcing Pipelines
To get the most out of strategic sourcing it is best to establish a robust sourcing pipeline and to monitor it frequently. In other words, sourcing packages should be put in a schedule that includes tendering strategies, targeted bidders, target prices, and savings potentials. By closely monitoring the pipeline and continually challenging strategies, targets, schedule slippages, and quality and quantity of bidders, buyers should be encouraged to raise their levels of performance and thereby improve the overall results from strategic sourcing. When used properly the pipeline tool instills discipline in the sourcing process, and usually drives better results.