3 initiatives to help make procurement become a hero in your organisation

In a survey conducted in collaboration with eWorld Purchasing and Supply, we asked senior managers and procurement professionals how they feel the procurement function is viewed within their business.

Our research revealed a staggering 65% of procurement professionals feel it’s viewed negatively and even putting forward a business case for new technologies such as eProcurement is a big challenge. It also highlighted that procurement is largely viewed as an operational function as opposed to a strategic function.

In the survey of procurement professionals:

• 9% said they are seen as administrators and an extension of the finance department
• 19% of respondents said they are seen to be bureaucrats who know nothing about what other departments need to purchase
• 29% feel that they are viewed as red-tape managers who restrict what the rest of the business buys

If you’re reading this and the above sounds familiar, chances are your department could be in need of a procurement hero!

To help you drive positive change and progress further, we’ve identified 3 simple initiatives you can undertake that will help you improve the role of procurement in your organisation. Using this powerful combination of communication and technology you can quickly make procurement the hero in your business.

1. Track every penny spent

We know the pressure is on for procurement to make savings and reduce organizational-wide spend. But without a system to account for spend it can be a major hurdle for any business to try and cut costs or discover potential savings opportunities.

However, using tools such as Medius Analytics you can quickly overcome this obstacle by gaining valuable insight and spend intelligence based on what is being purchased across your business. Simply build custom reports within Medius Analytics or use existing reports, access reporting dashboards and also drill down into individual spend categories. With the option to micro-analyse every penny spent you can quickly recommend where to cut costs and help drive strategic purchasing decisions.

2. Make a solid business case

Without a proper plan to help procurement become a hero you might struggle to get your projects off the ground. And without support from your senior management you can forget about getting budget sign-off for the tools that can help make life easier for you.

So, start by analyzing the areas and processes that need improving.! For example, maybe onboarding your suppliers is taking several days, or you’re still heavily relying on paper-based tenders, or that your contracts are rolling over all too often.

Then using whitepapers such as Calculating eProcurement Returns and Building the Business Case for Upstream Procurement Software which are packed with tips, real-word examples and ROI figures, you can try and build a business case to support your need for an investment in technology.

3. Get the right tools and technology

Procurement often faces pressure due to a lack of availability of the correct technology and tools. Since technology is seen as an enabler and central to procurement success, without being equipped with the necessary tools procurement departments often struggle to make the shift from a tactical to a strategic function.

However, using technology such as Medius Procurement, or Source to Contract to manage everything from contracts to sourcing, you can quickly increase staff productivity, drive efficiencies and increased ROI. And, with all your procurement activities taking place online, with full auditing and tracking available, you can easily use this audit trail to showcase your achievements to the rest of the business.

Why not download our Make procurement a hero in your organisation guide for more initiatives to help you get on the road to becoming a procurement hero? Or get in touch and let’s see how we can help!