How to support a company with no purchasing strategy and how to kick off?9 May 2018
How to build procurement teams and develop the employees working for purchasing departments? See the HR Business Partner suggestions!7 June 2018
Well structured, professional procurement processes may bring huge value for a business. It’s hard to estimate how much exactly a company can save thanks to a well-functioning procurement strategy as there are many processes having impact on generating savings. Although cost cutting and savings are still a priority for about 79% CPOs according to the Deloitte report. Let’s picture this: you’re joining a company where each department buys independently, from various suppliers and an acceptance workflow is done via emails or just face to face. Certainly, this model may work perfectly, however it doesn’t cause any savings. You get a task to work on a purchasing strategy for the company. Huge challenge, isn’t it? And it doesn’t necessarily have to be completed successfully. All depends on how we kick off the project and how the change management is going to be coordinated. How to start and keep a cool head? We have a hint for you!
6 first steps you need to take to support a company in building purchasing policy.
- Take a deep breath. There is a long way to go. But if you approach the task smartly, you will be surely successful.
- Analyze the categories. You may base your project on Kraljic Matrix we were writing about in one of our past blog posts. You will find more about how to carry out a proper analysis you in the infographics below.
- Use the small steps method. In the companies where there is no procurement policy, usually the teams responsible for purchasing have limited human resources. That’s why it’s good to start with rather smaller revolution. How? See the infographics.
- Check how it works today. Implement software which helps you monitor and verify what’s going on.
- Engage the teams which buy standard items regularly (for example, office supplies, IT devices for employees, marketing gadgets, trainings).
- Basing on your talks with the managers, recreate procurement process models which are currently used. Below you will find a hint how to systemize gathered information.
I'm a Business Developer specializing in international markets. Experienced in launching new products on international markets (mainly US and UK), marketing (outbound campaigns, social selling, customer segmentation, event management) and customer success.