Examining Your Procurement Process Can Yield Insights Into Potential Savings Opportunities

May 16, 2012 by  Filed under: Management 

The process of procurement for a business is often undermined and neglected by executives and business owners. However, one should realize that the procurement process of your business may be harboring potential saving opportunities you weren’t aware of in the first place. Examining the procurement process can definitely yield for a more successful business pursuit via lowering costs and improving savings Below are some tips for effective process of procurement.

First, spend ample time for planning and preparation. During the outset, consider the full reach of what requires to be accomplished, by whom and when it needs to be accomplished. Furthermore, you should be able to identify who should be involved and if they are being consulted. Also, consult other departments and local organizations. It is always more difficult if you begin with a blank sheet of paper. You should also establish a full procedure timetable with consultation periods, approval schedules, invitations, receipts and scrutiny of interviews, contract grants and further on.

Next, organize roles and responsibilities. Organize the roles and responsibilities of all individuals involved. For instance, who should be deciding or approving the short list? Also, who will be accountable for the quality and cost evaluations? Get everyone involved to contribute to the preparation phase. People you should include are internal lawyers and auditors of the business. Be clear of what grants are needed from elected members and their responsibilities and functions in the entire process.

Third, guarantee transparency of proceedings. Be visible to be equal to all prospecting tenderness and that the process is facilitated without bias. Extensively engage with stakeholders and current contractors before formal proceedings. Obtain all internal players to contribute to the crucial success variables and key evaluation criteria, and document these. Also, allot ample time for renders to put their case during assessment, interviews and presentation.

Fourth, check legalities. Make sure it complies with EC Procurement Directives, local laws and regulations, contract standing orders and so on, mainly in respect of ads, invitations, receipts, evaluation processes and grants. Look for expert legal opinions and involvement in the process during the outset phase. Remember, you are starting events that will lead to a contract with an external organization. You should make it right.

Lastly, implement innovation and secure best possible value. Never prohibit tenders. Never be too prescriptive on how you want the work to be rendered. Describe the results you need. Try to look for means in which veteran suppliers and contractors can bequeath their experience and knowledge and enable them to innovate and provide you their most ideal solutions.

The procurement process has changed a lot in the last few years; visit our website if you’re considering new strategies.

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