In today’s world of technology, businesses grow at an increasingly rapid pace. However, as expectations increase and deadlines shorten there are progressively more errors in efficiencies and quality. We are always looking for the better mousetrap by using automation, applications, software, and digital communications. Across all industries you can read about new processes that have streamlined their operations and they have experienced unexpected growths. And yet, there are still categories of business who haven’t found that transformation.
Procurement officers are a valuable asset to many trades and understand the necessity for details and workflows. Procurement has always been considered a necessary expense. Experienced and knowledgeable CPO’s bring tremendous value to their organizations delivering results time and time again. However, in the traditional and modern approaches to procurement there are still many deficiencies and waste that are inevitable.
What if there was a better way? As with most processes there’s a growth in maturity and improvements are discovered. How can we get more value from our procurement? How do we reduce our indirect spend, save some of this necessary expense and gain confidence in our process. We need to enable the businesses and give the procurement managers the ability to monitor every facet of the process and learn from everyone involved, giving them 360° visibility of their project, for superior management control.
There are already industries implementing a single source technology that has streamlined their process and are appreciating savings of 20% or more in their total spend analysis. They are engaging their suppliers and learning how to decrease risks as well as enhance performance. Price reduction in purchasing can be an integral factor in savings, but is not the only facet to be considered. We can now use technology to analyze spending patterns, gain complete visibility of our project, and be proactive in compliance issues.
This new phase can enhance efficiencies and effectiveness of people, streamline processes, and take back total control of our project through transformation of the procurement process.
Contestability is created in a competitive bidding environment that weighs each bid based on the same specific details in the RFQ. Suppliers are also monitored and evaluated on more factors than just price. They are assessed based on a dynamic of response time, variances, milestones, and customer satisfaction to outline a few. This accreditation process helps managers evaluate the long term sustainability aspect of a purchase against the short term price related benefit.
After awarding a job to a supplier we can manage all the correspondence, related materials, and variances in one process – enabling the ability to generate insightful reports to understand spend analysis and areas of deficiencies. Establish milestones at the onset and let the software automate the workflow to notify each party when a task is completed and who is responsible for the next step. This innovative use of technology streamlines the sourcing and procurement process while improving management and control capabilities.
We can still produce quality results to our client, but now our sourcing process can be more efficient and give us value as well.