Stakeholder interaction: why is it important in procurement?

Contrary to what most professionals believe, procurement isn’t all about cost cutting. While savings are…...

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Contrary to what most professionals believe, procurement isn’t all about cost cutting. While savings are important, those that are made have to be sustainable. Otherwise, it would be futile if the quality of the end product diminishes, causing the organisation to lose customers. The industry also focuses on improving quality of the materials and products and maintaining good relationships with suppliers and stakeholders. 

Importance of stakeholder engagement

Before looking to source any product or raw material, procurement usually draws up a plan on how the entire process will be undertaken. This plan should be shared with key stakeholders. If they are not engaged, the procurement process becomes that much harder. 

It is also prudent to remember that if end users of the product and materials that procurement is sourcing are not on board, the sourcing initiative is bound to fail. Remember, if you suggest an alternative supplier without getting the end-users on your side, it would be difficult for them to buy-in. Also, the key decision makers should be on board to ensure agreement from the end users. 

As a procurement professional, you will need certain information before you can go ahead creating the procurement plan. This information, like specifications and quality standards, are always with the end users. You may not have the right knowledge and expertise to identify alternates and substitutes. Hence, it would be necessary to engage end users to get the right information and tap on their expertise. 

The bottom line

Interacting with stakeholders will allow procurement staff to understand their requirements and fulfil them accordingly. Having stakeholders on your side will allow you to create a smooth and hassle-free procurement plan that is transparent. It will ensure the success of not just procurement, but the organisation as a whole. 

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