Good procurement departments do more than just buying; they play a vital part in improving a company’s value. We take a look at the five most important steps that managers should take to turn their procurement department into high-performance teams.
Experts have known for a long time that procurement is not just a service. With the right targets, structures and processes, buyers can have a huge effect on a company’s growth. Such value-enhancing procurement reduces costs, lowers risks, promotes innovation and helps to improve products and services.
But this level of procurement excellency doesn’t “just happen”. It is up to management to develop it and to first remove obstacles that prevent procurement from reaching peak performance, such as:
– insufficient monitoring of the procurement process
– inappropriate strategies and structures
– a lack of resources
– inadequate cooperation with other stakeholders
So what exactly can be done? Real world examples show how management can best set up and run their procurement activities and the results that a strategic procurement transformation can achieve.
Read the full article about successful procurement transformation here.