Is Your Procurement Group Staffed and Organized Appropriately for Success?
How is your procurement group organized and does each member of the team have the appropriate skillsets to perform at the highest level? What kind of traction does it get with internal business partners? How effective is the organization in meeting the pressing needs of the business? How much time is spent on the critical aspects of strategic sourcing vs. transactional processing? These are the primary questions AES Consulting helps you answer during the organizational assessment process.
This starts with a review of the way in which your procurement group deploys its resources and addresses critical categories of spend and a review of the mechanisms used to partner with internal stakeholders to jointly set and achieve their goals. We will identify gaps in skillsets and training needed to enhance performance and make organizational design recommendations, if warranted. We can also provide recommendations on how the procurement function can better partner with internal clients and build the business case for enhanced stakeholder involvement and acceptance.
Supply Management Has Come a Long Way!
Over the years, supply management has evolved to the point that it can mean the difference between a profitable and competitive business and one that continually struggles. The profession and world class procurement organizations have gone well beyond what was historically considered to be their primary role, i.e. to simply obtain the goods and services requested by internal customers. Today, leading procurement organizations:
- Understand the needs of the business and partner well with internal clients
- Develop the appropriate supply base that can deliver goods and services at competitive prices and at the right quality
- Work with suppliers to bring innovation and new product ideas to the company
- Are focused on risk mitigation for the business
- Become very knowledgeable about key categories of spend, understanding the economics and current issues and opportunities of the related industries
- Are skilled project managers with a keen focus on delivering results
- Understand and practice mutual gains negotiations, creating value for both parties but also ensuring that their company gets the appropriate amount of value vs. the supplier
All of this is enabled by having the right organizational design, appropriate in the circumstances, and a properly trained and talented procurement organization that is connected to the business.
Let AES Consulting assess your organization and help you identify additional ways in which to generate value for your company. Contact us at 609-306-8176 or by using our online contact form.