Using procurement diagnostic to ensure procurement excellence

Many companies still do not have a process for procurement diagnosis, but it is an…...
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Many companies still do not have a process for procurement diagnostic, but it is an essential step if they are looking to improve their procurement performance.

Typically, organisations opt for procurement diagnostics when a new decision-maker, such as a CPO, CEO or purchase manager, joins. They use it as a way to ascertain the outdated and problematic procurement approaches and methods and to bring about improvement so that procurement can add value to the organisation.

Companies both big and small should not shy away from procurement diagnostic as it helps procurement to make improvements a continuous process and to adopt sustainable and best practices. Above all, it helps procurement to proactively adjust to the needs of the organisation.

Here are a few ways that can help CPOs to succeed when conducting procurement diagnostic.

Get support from other decision-makers

Ensure that other decision-makers in the company realise that procurement diagnostic will help procurement to transform and improve, thereby adding value to the organisation. That way, they will support your efforts to bring about a positive change.

Involve the entire procurement team

When conducting the diagnostic, ensure that the entire procurement team is part of it. This will enable them to learn and to create conditions that will keep the team members motivated to bring about real procurement transformation.

Use the right tools and methods for diagnostic

To get the anticipated results, it is essential to adopt the right tools and methods. This has to be done based on the way that your organisation functions and its goals. It is only then that procurement diagnostic will provide recommendations for areas of improvement. When this happens, you can expect skills development to take place among your team members.

Procurement diagnostic helps to identify vital practice areas that can improve. It provides recommendations that should be followed to get the correct results.

Source: http://www.excellence-achat.com/15-tips-to-successfully-conduct-your-procurement-diagnosis/

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