February 27, 2021

DIGITAL CFO ASIA

Transformative Insights for Finance

5 Tips To enhance your procurement process

2 min read

Procurement is often a tedious process

Procurement leaders often wear multiple hats and have a wide range of responsibilities, from vendor management to payment processing. Read our article below for 5 tips on how to enhance your company’s procurement process and make it more efficient.


1. Staying Digital and technology savvy

With many steps in the procurement process, Robot process automation (RPA) can help to reduce bottlenecks and enhance efficiency. RPA reduces transactional operational tasks, boosts ROI, and optimizes workflows for procurement. Accenture states that a leading global energy company saved $2.5mn annually by automating over 100 procurement, accounting and finance tasks. RPA can help to improve customer service and employee satisfaction, increase security and compliance, and reduce operational costs.

2. Be collaborative, communication is key

The ideal sourcing situation for a company happens when teams cross collaborate on all aspects of a sourcing project. From procurement being involved in early stages of product design and conceptualization, to including internal departments opinion on important decisions such as supplier selection. Having cohesive collaboration allows cost, delivery, quality, service, and source flexibility to be balanced instead of one being sacrificed for another.

3. Look outside of the market

Heathrow’s procurement team were able to suggest an alternative to traditional check-in desks because they understood what other options were available, said Sparkes. With new technology and products being churned out every single week, procurement leaders should keep a look out for unconventional products that may improve work efficiency or lower costs. Effective procurement leaders should not only understand their own market, but also look outside of it for innovative products and solutions.

4. Foster good relationships


(Source: Singapore Institute of Purchasing and Materials Management)

Good contract management will deliver what is expected of the written contractual obligations. But the relationship between people is the crucial part that will go a long way. Supplier relationship management is an important approach used for engaging with suppliers that reflects the priorities of the company. It can help to reduce supply chain disruptions and product scarcity, as well as improve on-time delivery and quality of goods.

5. Master the art of innovation

Suppliers are a wide pool of potential innovation. Having great supplier relationships can drive significant revenue opportunity and reduce costs, ultimately greatly increasing the stature of procurement in an organization. This is a window of opportunity as procurement can collaborate with suppliers to develop new services to grow market share and retain customers while creating significant upsell opportunities.

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