Procurement can be simply defined as the action of obtaining things. In the business world it is defined as the act of obtaining or buying goods and services. Its importance in any business cannot be overlooked. This has driven businesses and organizations to have entire departments handling the duty of procurement. These processes can be quite elaborate. This process commences by planning for what the organisation needs, taking care of whatever the organisation has procured and disposing it after it has accomplished it’s purpose. In other words all the property of the organisation goes in and out only through the procurement department. This area of the organisation is very important and should always have high standards governing how everything is done.
Integrity and transparency are the core values of a good procurement process and the system of practices you use must ensure you adhere to these values. It is your procurement systems that will determine if you can take advantage of what the market has to offer. You should always work smart and efficient when procuring goods and serices. Good practices will give you an edge in this competitive market.
The best way is to begin by doing a market research and analysis. By doing this you get to know your market better. You will know the best suppliers to use for everything you need. This allows you to do strategic sourcing of the resources of the organisation. A supplier may be near you but that doesn’t mean that they will be the cheapest. Procurement research will let you know the advantages and disadvantages of using the suppliers at your disposal. One other important thing is standard determination to ensure that what comes in meet the set standards.
It is good practice to have rock solid system of software to manage all the processes. The best would be an ERP software. It is however important to have knowledge of the best software for your organisation and how to use it. For you to make the best use of the software it is good to get ERP consulting so as to get the proper direction and guidance on matters relating to the software. The ERP tools available to you can make the process run faster and more efficiently.
You have the option of going for procurement outsourcing if you don’t have the muscle to run your own department. You can determine the cost benefit of outsourcing the service by doing a simple spend analysis of the department. If it is cheaper to outsource then you will have the opportunity to relieve the resources of the organisation from the task of procurement. You will have more resources to use in the organisation after freeing them from the procurement process.