Throughout history, advances in technology have allowed people to pursue creativity expand their minds to develop even more technological advancements. As technology advances, so does productivity, increasing the capacity for future technological advances.
In the business world, these technological advances, creative pursuits, and increased productivity translate into higher profits. Application of these concepts: technology, creativity, and productivity can and should be applied to every facet of your business so that you can be as effective and efficient as possible.
3 Essential Qualities to Drive Effective Procurement are:
- Developing Fundamental Capabilities,
- Bringing Influence Throughout Your Organization
- Embracing Innovation.
Having a sound procurement strategy allows companies to survive economic downturns by applying cost-cutting measures when necessary and to adjust appropriately when the situation changes.
Being able to deliver on all three qualities is what separates high performing from weak performing procurement organizations.
Increasing Fundamental Capabilities
Without the necessary foundation and base level understanding of what your organization needs, a procurement strategy will not be effective. Being capable of delivering basic procurement is the first step towards increasing efficiencies.
If your company already has a basic procurement strategy in place – take time to improve it. Are you stuck in a pen and paper system? Consider moving to e-procurement software.
Procurement is most effective when the roles of users, suppliers and management are aligned with the strategic direction of an organization. A CPO or CFO should foster an environment where procurement policies are adopted throughout an organization to develop spend saving and cost effective results to an organization. A strong strategic leader will be able to influence their company and enable forward strategic thinking. Ensure your whole organization is trained to use your procurement process – this can reduce or even eliminate maverick spending and will increase spend visibility.