How are best of the companies procuring

Going digital is one key thread that connects all successful procurement organizations. The most successful procurement organizations have achieved intense cost-cutting and value add to the business through a well set digital process. Considering the huge no of procurement items, a transparent and automated digital process is key to delivering the desired value. Technology enablement is a necessity for the companies which are wanting to change the way they are procuring currently.

The best of the procurement companies are using technology, data and analytics in procurement. Digitalization of procurement is a key emerging trend in recent times. Every successful procurement organization is being driven by an inhouse or outsourced team of experts who are able to leverage digital platforms to automate source to pay process.

 

Key steps of an ideal procurement process:

Benchmark Assessment

Assess critical components of your indirect procurement operation compared to industry best practices and the COPC Indirect Procurement Standard. The scope is tailored to business needs and can range from one specific area to all 28 items of the Standard. The experts provide detailed analysis and recommendations for improvement and work side-by-side with businesses to implement plans to address the most important opportunities

 

Spend Analysis and Optimization

Indirect procurement organization work with internal stakeholders to identify and catalog current spend by business unit, supplier, category and commodity. From this analysis, next step is to provide a roadmap for optimizing supplier base and spend.

 

Stakeholder / Supplier Satisfaction Assessments

Indirect procurement organization work with internal stakeholders and key suppliers, to help develop effective feedback mechanisms to solicit, evaluate and effectively respond to input received. This includes recommendations on how best to optimize interfaces with these groups.

 

Sourcing Strategy and Support

A well-designed sourcing strategy is critical for optimizing spend and increasing satisfaction. Here the indirect procurement function operates to develop a best-in-class digital RFQ to pay process. They prepare all related documents, train the staff, and support in evaluating key suppliers, including site visits if required.

 

The above applies more or less to all organizations who are thriving for an efficient indirect procurement process. According to some of best business consultants, “world-class” procurement departments operate about 20% more cheaply than average companies. And they have 27% fewer employees.