2018: The year of high-velocity procurement

Procurement
Date Posted: 05/04/2018 Category:
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2018: The year of high-velocity procurement

Date Posted: 05/04/2018 Category:

Change is inevitable, but the rate at which change is implemented makes a difference. It is anticipated that in 2018, procurement professionals will have to accelerate their supply chain if they want their organisations to be competitive in today’s digital and globalised economy.

Why is speed important?

Decision makers in any enterprise have the responsibility to maintain top-line growth. They need to react with alacrity to market changes and pressures so that they can remain prosperous. However, most decision makers are not concerned with their sourcing team’s ability to find an affordable supplier to ensure sourcing savings.

Unfortunately, sourcing is not associated with speed as it is an extremely process-oriented task that also involves a lot of administrative undertakings. This slows down the entire sourcing process and, as a result, it adversely affects the delivery cycle for the end customer. So, if an organisation wants to ensure deliveries are executed quickly and to the satisfaction of the client, it is imperative that the sourcing team becomes more agile and anticipates the needs of the organisation.

How quickly the procurement department responds to the needs of the business will affect the top and bottom lines. The speed of sourcing quality materials to convert into finished products gives any organisation a competitive advantage.

Making sourcing a key organisational task

External suppliers are the key to realising the CEO’s vision. However, the drawn-out RFI process should be done away with. Instead, the sourcing team should have access to the insight needs of the business. The team should be able to refer to the company’s vision and goals so that it can organise itself to shortlist key suppliers.

Once suppliers are on board and the supply chain is in place, sourcing professionals should have the ability to react quickly and effectively to ensure that a steady stream of materials makes their way into the inventory. This way, the production cycle will take place without interruption or slowdown.

If you want to maintain your competitive edge, sourcing leaders should be part of the organisational chart and be privy to the CEO’s goals and vision for the organisation. This will ensure that any purchase occurs quickly so that end customers never have to wait for deliveries.

Nick Ford

Nick has over 30 years procurement experience in consulting, outsourcing and line roles within industry with international experience across many sectors and industries and led many procurement programs with blue chip organisations.

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