PROCUREMENT THE ART OF SAVING MONEY.... AT YOUR EXPENSE. SAY WHAT????

To many the role of the Procurement group is simply adding red tape, bureaucracy, complex controls and governance. Individuals whose sole purpose is to stifle people’s soul. What is wrong with this picture? Supply Chain is as critical to an organization’s success as the role of the Operations and Marketing groups. Operations do not transcend day to day mundane activities.

Procurement's role should be viewed as a strategic function focusing on improving the company’s profitability and to reduce unnecessary risks. To mitigate risks, companies need controls.

In challenging financial times, companies need to learn to find efficiencies in every area of the business from a penny to a million. Companies cannot do this in isolation. Engaging suppliers and internal stakeholders to find mutually beneficial solutions are critical. Suppliers can’t be held hostage or forced out of business as this will disrupt your Supply Chain.

In an era when information is spreading faster than ever before, companies are careful to avoid Supply Chain issues related to fair labor, political landscape, environmental, financial, safety, and health etc.

Have you ever wondered why we do not hesitate to plan in advance, research, and hustle when we are spending our own hard earned money? If we have skin in the game, we become the savviest strategic sourcing ninja on earth. Why should spending someone else’s dime, be any different? I have managed many professionals in Operations and Procurement and my instructions are simple, “pretend it is your money”.

It is true that many organizations struggle with finding the right balance between controls and efficiencies. But having controls does not necessarily mean complexity. Companies must leverage technology, lean processes, and their human capital. The effort to create a PO should not be the same as sending a shuttle to the moon. For those feeling the pains of ineffective processes and systems, rather than complain about the problem, become part of the solution.

Procurement this is for you… Sourcing is an art. Sending a bid to well- known suppliers is not an accomplishment. Pushing papers without adding value is not strategic. Hustle Hustle Hustle. Listen to the voice of the customer (VOC) vendors and internal stakeholders. Allow the staff in the field to concentrate on value-add activities vs. administrative duties without increasing risks, costs or reducing controls. Think outside the box. Give people what they need, when they need it for a fraction of the cost.

"Simplicity is the ultimate sophistication" Leonardo Da Vinci