Why procurement should focus on stakeholder interaction

Most internal stakeholders in an organisation are under the misconception that procurement worries just about…...

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Most internal stakeholders in an organisation are under the misconception that procurement worries just about cutting costs.

As a result, departments begin viewing procurement with suspicion.

It can be tough to work and manage stakeholders who are resistant and unwilling.

Thankfully, there are ways to boost stakeholder interaction and demonstrate to them that while cost-cutting is essential, procurement also focuses on ensuring quality and cultivating good relationships with stakeholders and suppliers.

Stakeholders need to understand that saving is essential, but not at the cost of quality.

It is only then that procurement and the organisation can be sustainable.

Importance of engaging stakeholders

Before sourcing products or materials, procurement typically creates a plan to map the entire sourcing process.

Procurement should not be looking to keep this plan away from key stakeholders – instead, it should be shared with them so that they feel engaged and part of the entire project.

Stakeholders are the users of the products and materials that procurement sources.

If these professionals are not happy or on board with the suggestions and recommendations, then the entire project will fall through.

You can get stakeholders to buy your suggestions only if they are on your side.

That is why you should begin by engaging the key stakeholders and decision-makers.

In order to source products or materials, you will require specific information from key stakeholders.

By engaging them, you will be able to utilise their knowledge and expertise to help identify substitutes and alternatives in case what they require is not available.

The final word

By interacting and engaging with stakeholders, procurement can understand their needs and work to fulfil them.

When stakeholders align themselves with procurement professionals, it is easy to draw up a procurement plan that is transparent and hassle-free.

As a result, not only procurement but also departments and the organisation as a whole end up being successful.

Source: https://www.linkedin.com/pulse/importance-stakeholder-engagement-procurement-scott-pegg

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