Procurement – Five Things You Must Know About It
Updated: Oct 25
Procurement specialists are responsible for locating and purchasing high-quality products and services which will benefit the business and facilitate increased productivity and success. In order to do so, it’s crucial for those responsible for the procurement to be familiar with and well-versed in the policies, risks, and other factors associated with procurement and the supply chain. When a procurement specialist is able to do their job well, the impact on both the organization’s budget and overall mission can be very positive.
For the most part, the standard process of procurement involves five steps, all of which need to be thoroughly understood by the procurement specialist. These steps include:
Determining the needs of the business and defining requirements
Selecting the right supplier
Drafting the agreement
Administering daily needs
Assessing the performance of both the supplier and the products or services acquired from said supplier
Regardless of how much of this process is automated by the organization, these steps will be no less crucial.
Not only is it important to understand the role of the procurement specialist, but it’s also essential to know what features the procurement system itself must have in order to better benefit the business. Any successful procurement process should possess:
A centralized spending map that is regularly updated so that purchases and needs can be continuously analyzed in order to bring attention to any changes or adjustments that need to be made
The ability to monitor costs so that those in charge can ensure that the correct products and services are being obtained at the best possible price
A way to discuss the benefits of reduced costs with those located throughout the organization
A way to deliver those products and services acquired in such a way as to tie together both those commercial and technical abilities which promote overall success and client satisfaction
A focus on contract and supplier relationship management
The future of procurement is certainly changing. Where once purchase orders were considered the norm, now there is more of a focus on long-term contracts with specific, carefully chosen suppliers. This shift in procurement has made it imperative for both supply and purchasing managers to familiarize themselves with contract preparation and management.
With the help of Digital Purchase Order, companies can make their procurement process even more efficient and reduce many of the costs and risks commonly associated with purchasing. To learn more about the benefits of this system, email us at Digital Purchase Order today! (firstname.lastname@example.org)