Are You Currently Operating Procurement Effectively
When we ask this question we usually receive differing responses, but typically the response from clients are split in two main themes.
Theme 1: "We believe so, we have always managed in the past". Theme 2: "I believe what we do suits our business but we are not really sure if we are operating effectively or getting best value"
In order to fully understand if your procurement activities are running effectively you need to first answer the following questions:
Do you know:
1. Your current Spend Profile?
2. Your critical path supply chain?
3. How you currently test the market?
4. If your governance, procedures, Ts & Cs reflect your current business strategy?
5. If you have sufficient cost controls in place?
6. If Procurement is fully engaged by the business?
7. How you currently identify and vet new suppliers or service providers?
Understanding how procurement is currently operating in your business is critical in order to effect any positive change going forward.