Using modern eLearning solutions like simulations and scenario-based training along with gamification and webinars, your organization can provide Innovative training programs that keep your employees engaged at an affordable cost. Using a procurement management system helps track the picture to pay process from end-to-end. To do this, you must obtain data from internal stakeholders, suppliers, and any other parties who are involved in the procurement process. The term procurement strategy refers to a long-term plan to cost-effectively acquire the necessary supplies from a list of efficient vendors who will deliver quality … Often, these strategies focus on options such as reducing costs and mitigating risks.”. A strategic procurement team is essential to set the overall direction for procurement, aligned with the business strategy. Today’s procurement landscape calls for a more strategic approach aligned with the overall organizational strategy. OneHQ have been helpful in scoping, procuring and configuring IT hardware whilst our office was in the midst of construction. Often, these strategies focus on options such as reducing costs and … promotion of competition). Procurement strategy should be a comprehensive roadmap for company spend and a tool to maximize budget and minimize errors, late or duplicate payments, maverick spend, and poorly-timed deliveries. Using data and information you’ve obtained, create a draft procurement strategy that lists down your goals and tactics that you will use to achieve them. With an IT procurement policy and procedure, your business can seamlessly execute its projects with the critical IT products and services by its side. Strategic procurement incorporates actions aimed at reducing the overall supplier base, negotiations, communications, and working to maintain long-term relationships with suppliers. Procurement departments need to make five important shifts to support faster, decentralized decision-making throughout the business. Strategic procurement is an organization-wide process. Before you can make any changes to your current procurement strategy, you have to analyze your existing spend culture. 1. You can use methodologies such as scope analysis and Porter’s five forces to make things easier. As your strategy is executed, it will demand involvement from other departments in your business such as Human Resources, Administration, Sales, and Finance. A procurement strategy defines how to procure a service, product or components at the highest level. Strategic Procurement: What It Is and How To Implement It, Strategy statement: the rational and the basis, The metrics used to evaluate your process. Using the data you collected in the previous steps can help you determine the annoyances in your procurement process. Before you can design a robust procurement strategy that gives your company the best possible results, you must understand your organization’s needs. Modern procurement tools can transform a painfully slow procurement strategy to world class overnight. Dark spending is also a threat as it undermines the trust upper management have in your IT. Assign a champion. Our people are both technically excellent and love working with your team to provide exceptional support. The tools used such as TCO, SWOT analysis, SCOPE analysis, Category Positioning Matrix, etc. The report also highlights of high-performing procurement leaders outperform others and executive advocacy, strategic decision-making, Talent capability, digital procurement, supply chain transparency, and balanced scorecard capabilities. It’s about getting the right products, configured, bundled, labeled, re-packaged (with instructions, if needed), delivered to multiple offices on a timely manner and having technical support available to get you up and running quickly. Procurement Strategy directly connects an organization to its suppliers. Procurement Strategy article originally published by, and permission to publish here provided by, Sam White at argentus.com. It is structured around the 5 strategic goals of the University’s Strategy 2020 and demonstrates how Procurement will support the University in its achievement of its goals. Using a SWOT analysis can identify the current state of your procurement functions. There are many ways of sourcing products through non-traditional channels allowing many companies to sell products they are not authorized to sell. Using a category positioning matrix can help your organization identify the key business requirements that go into the development of your procurement strategy. Set up and execute the procurement strategy; 8. Organizations should set up a strategic procurement team. PR10-008-I ; Several factors such as the budget, requirements, contract, etc. Give us a call today for a chat. The boom in the adoption of strategic sourcing implies that almost everyone has heard of it. They all seem the same. Take time to implement a digital procurement strategy as it will enable your company to spend more time with suppliers and the strategic parts of procurement instead of transactions and administrative tasks. Compass Housing Services have been working with OneHQ since early 2019. Definition You must also stop excessive or unauthorized spending. This team sets the overall direction for procurement, aligned with the business strategy. Routes to Strategic Procurement. Modify your procurement policy to address the risks you’ve identified during the SWOT analysis. “Technology procurement is no longer a tactical function,” explains Luke Ellery, research director at Gartner. Study the market; 4. Let OneHQ assist you with your next roll out and experience the difference. It needs your involvement and determination whether to proceed competitively or non-competitively and includes all the details that support regional benefits. A procurement strategy is developed in order to establish the direction of how procurement should be organised in order to implement the procurement policy. Enter your email below to begin the process of setting up a meeting with one of our product specialists. Strategic procurement also deals with the development of cost-saving communications and IT, improved procedures and logistics, high consumer demands, increasing environmental awareness and transparency requirements, and dynamic competition. 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