Procurement Methodologies and Processes

Having a robust sourcing methodology and efficient processes are critical elements of building a world class procurement organization. I don’t know of any procurement organization that isn’t over worked, so these measures can have a great impact on extending your reach in your company. Let’s start with methodology. It is important for your organization to know and follow a well thought out sourcing methodology in order to get the maximum value from the work that they do. Articulating how to go about understanding the spend, exploring the marketplace, developing the appropriate sourcing strategy, designing the RFP, and developing and executing on the negotiations strategy, all build on one another and contribute to successful sourcing events. And this is especially important when you bring new people into your organization in order to reduce the learning curve.

There are a number of processes that are also important to the efficiency and effectiveness of the organization. This starts with a good, clear purchasing policy that is well communicated and followed throughout the company. I have seen this have a dramatic impact on how the procurement group is engaged and significantly increase savings within the company. Simple to do when well written and clear about the roles and responsibilities of procurement and their key stakeholders.

Other important processes that should be reviewed and optimized include looking at sourcing cycle times, the use of Purchasing cards (P cards), aligning with stakeholders and setting procurement savings targets, the use of on-line auctions and last but not least, negotiations training. Done properly, all of this can take a tremendous amount of work off your plate and simplify the ways in which you engage your internal clients/stakeholders.

Whether your procurement processes need a little fine-tuning or a dramatic overhaul, AES Consulting can help you. If you would like to maximize the value your business receives from its procurement processes and methodologies, contact AES Consulting at 609-306-8176 or by using our online form.