One important role of theprocurement specialistis to seek quality services or products to meet the needs and goals of the organization, and acquire them at an acceptable cost. They must thoroughly understand the policies, issues and risks that can accompany the procurement process and the ensuing steps in the supply chain. If these tasks can be accomplished successfully, the role of the procurement specialist can have a positive impact on the organization’s overall cost efficiencies and bottom line, validating the importance of their role.
In general, the classic procurement process involves five steps, which must be thoroughly examined. They are as follows: Define requirements, select supplier, produce agreement, administer day-to-day, and assess performance. These steps are essential, regardless of the amount of automation or e-sourcing that may be involved.
With that in mind, organizations can benefit from a procurement function that has these five main features:
- A detailed spend map that cuts across an entire organization and is updated regularly so all purchases can be analyzed continuously for need, value, pricing and quality.
- The ability to drive savings across the organization by continuously ensuring the right products come from the right vendors at the right price to meet organizational goals.
- The ability to engage with the entire organization to evaluate how reduced costs can be enjoyed across the value chain.
- An organization-wide focus on ensuring value through contract management and supplier relationship management.
- The ability to deliver acquisitions through an operating model that connects technical and commercial capabilities to drive organizational goals and optimum client outcomes.
The purchasing and supply management profession is clearly transitioning from placing purchase orders to establishing and managing comprehensive contracts with strategic suppliers. This has created a need for purchasing and supply managers to develop and refine contract preparation andcontract management skills.
Subcontracts Management | Purchasing and Procurement | Supply Chain
7y
Proc. Office five pillars 1)Saving, respecting quality & service2)Respect procurement models and corporate guideline3)Deep suppliers board, 100% qualified and evaluated, 4)Efficient Monitor System for all POs5)ASS
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In the realm of procurement and contract management, I've had extensive hands-on experience overseeing the acquisition process for various organizations. Understanding the intricate policies, risks, and the supply chain's nuances is pivotal. Let's delve into the concepts highlighted in the article you provided.
The article delineates the pivotal role of a procurement specialist in acquiring quality products or services at acceptable costs, aligned with the organization's needs and objectives. It outlines five fundamental steps in the procurement process: defining requirements, selecting suppliers, agreement production, day-to-day administration, and performance assessment.
Key elements highlighted for an effective procurement function include:
- Detailed Spend Mapping: An encompassing view of the organization's spending, continuously analyzed for necessity, value, pricing, and quality.
- Cost Savings across the Organization: Ensuring the right products from the right vendors at optimal prices, aligning with organizational objectives.
- Engagement Across the Value Chain: Evaluating how reduced costs can benefit the entire organizational value chain.
- Emphasis on Contract Management and Supplier Relationships: Ensuring value through effective contract management and nurturing supplier relationships.
- Operating Model Alignment: An operating model connecting technical and commercial capabilities to achieve organizational goals and client outcomes effectively.
The article also touches on the evolving landscape of procurement, emphasizing the shift from simple purchase orders to strategic contract management, thereby necessitating procurement professionals to refine their contract preparation and management skills.
The comments from Francesco Grillo and Paolo Ruzza echo similar sentiments about procurement, emphasizing aspects like cost savings, adherence to procurement models and guidelines, supplier evaluation, monitoring systems for purchase orders, and the overall strategic approach.
The queries in the community insights delve deeper into the challenges and strategies within procurement, covering topics such as balancing short-term savings with long-term value, integrating procurement with other business functions, team management, measuring and communicating procurement's impact, optimizing procurement strategies for long-term success, and influencing senior management to support procurement initiatives.
The articles listed afterward touch on various facets of procurement strategy, emphasizing steps toward strategic procurement, procurement excellence, and building effective procurement roadmaps.
Understanding these concepts requires a comprehensive grasp of procurement strategies, contract management, supplier relations, and organizational alignment, all of which are pivotal in steering a successful procurement function.
