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Procurement in the 21st Century

There are a range of key factors to ensure success in all sector growth. The 'power of the purse' is crucial in all organisations regardless of size, shape or industry, as is the ability to manage costs effectively through innovative procurement practices and processes.

Intelligent Procurement

Successful procurement is driven by effective planning and a strategy focused on 'intelligent purchasing'; namely, plan what needs to be bought and how to buy it. Early planning, skilled procurement professionals and effective project and contract management will deliver a true innovative procurement strategy and associated costs savings whilst maintaining the quality of product or service delivery.

Effective procurement management will invariably require first class technology management skills and a genuine ability to analyse short, medium and long term products or services costs combined with a genuine ability to develop supplier relationships. The days of 'beat the supplier' are a long gone practice. The most effective procurement policies and management are becoming more successful through the development of genuine partner relationships across the entire supplier base.

What is the market saying?

The most effective Procurement strategy is focused around initially identifying what is available and at what cost in the market. Clearly define what is to be procured and then approach the market for the same innovative options. How can we buy the best, most effective goods or services to meet our current goals but with the option for change to meet our on-going improvements and developments?

Involve the stakeholders

Early conversation with all internal and external stakeholders will create a clearly defined requirement, strategy and operational supply chain ensuring all 'partners"' understand their part in the successful process from initial needs advisor to delivery partner.

Value for money

Cheapest is not always the best. Procurement professionals will always look at true value for money within the supply chain. Price conditions are important but all due consideration  will also be given to the total lifetime cost; factors including maintenance requirements, delivery schedules, reliability and long term suitability.

In short, a true procurement professional in today's market-place is a genuinely analytical individual with first class planning, communication and relationship development skills.