With the rapidly growing business environment, the demand for purchasing officers is also rising in every business sector, boosting the efficiency of your procurement will result in cost savings to your organization. Are you a Procurement Professional who purchases goods or services for your organization? If yes, then you may always be wishing to increase the efficiency of your procurement procedure.
Increasing the efficiency with which your procurement software is used will result in cost savings for your organization. Here are some 6 tips that we recommend if you are looking for a solution to increase your procurement efficiency.
Build better relationships with the Suppliers
An upbeat and satisfied supplier is itself an asset to the organization. If you are familiar with the supplier for a long period of time, it will be easy for you to determine their negotiation pattern and supplier behavior. This makes it easy for you as a procurement professional to deal with him. Although, there is always an option of onboarding a new Vendor. But, this process is time-consuming and would require you to invest your resources. You must always take care that they are paid on time and should often appreciate them for their skills and services.
Enhance your Network
Enhancing your network will give you exposure to new ideas. Thus, you shall include and consult the stakeholders from other teams while taking a charge of any project. Apart from that, the good relationships you will form within the organization plays a major role in building trust, giving a boost to efficiency, and in a quick workflow. Apart from that, there is always an option of growing your network through blogging, LinkedIn, reading blogs, and connecting with the people working and leading in your domain.
3 Utilize your Analytical and Negotiation Skills
Managing the Vendors is the art of a Procurement Officer. You are required to smoothly communicate with your suppliers regarding the quality, technical specifications, negotiations, and delivery of the material to your premises. Therefore, you shall enhance your problem-solving, communication, analytical, and negotiation skills in order to achieve maximum benefit for your organization. In order to become a better procurement manager, you shall also understand and respect the supplier’s point of view.
Keep an Eye on Global Market Trends
Often, there are circumstances when the rates of the material which you are acquiring increases in the market. The reasons for the increase in rates are dependent most of the time on global and sometimes on the local market trends. Therefore, as a procurement solutions, you must always have an eye on the global trends and shall acquire the redundant material when its cost in the market is low.
Standardize and Centralize your Procurement
Standardizing your procurement procedure helps in the better management of the inventory. Apart from that, it will also be helpful in the proper management and utilization of the inventory available in the organization. Whereas, centralizing the procurement will help in PR Aggregation. Because of the PR Aggregation, the number of materials to be acquired will increase. This will open up the scope for better negotiation expanded amount of material.
Reduce Your Expenses
Get a complete overview of the vendor’s negotiation pattern, payment terms, and delivery period. It helps in better negotiation and in determining the rating of a vendor. Make the process of vendor onboarding simpler, automated, and quicker. Establish a product information management (PIM) system for transparency on the specifications of the products to the vendors. Keep a track record of all the decisions, delivery details, vendor behavior in a simple database format, keep in mind, the data quality matters the most!