New Years Procurement Resolutions
The past year was no walk in the park for procurement. Economic volatility and supplier disruptions struck global supply chains hard in 2011, intensifying the pressure on procurement professionals to cut costs and boost organizational profitability.
As 2011 comes to a close, the New Year marks a perfect time for procurement teams to create a new strategy for thriving in today's economic landscape. A few of the top resolutions for the year ahead -- according to a new report issued by BravoSolution, the spend analysis and strategic sourcing company -- include boosting company valuations, increasing procurement's internal stake in organizational strategy and enhancing supplier collaboration.
“Unlike most New Year resolutions we set for ourselves, this report outlines ten practical ideas that procurement can realistically embrace in 2012,” explains Peter Smith, author of the report and Managing Editor of Spend Matters UK/Europe. “Now more than ever, procurement needs to gain important buy-in from CEOs, CFOs and other top department executives to understand the role they will play in the larger business picture in the coming year.”
The report, available here, is offered free of charge by BravoSolution. Here's a look at a few resolutions to kick off the year:
-- Sit down with your five most-difficult stakeholders. Dealing with internal stakeholders can be more difficult than dealing with suppliers, but blaming stakeholders for non compliance and a lack of understanding of your company's procurement vision won't solve the problem. Instead, challenge yourself to sit down with these crucial partners and share your challenges, needs and procurement goals -- rather than expecting them to just “get it.”
-- Put the supplier at the heart of the process and technology. Typically when a supplier fails, procurement fails in the eyes of IT, marketing and production executives. To overcome this issue, focus on supplier information, risk, development and relationship management. The new mantra for 2012: your suppliers are your organization’s competitive advantage.
-- Start using market-informed sourcing -- or boost your adoption. Market-informed sourcing is proven to boost category savings up to 30 per cent, but adoption is still extremely low. This new approach empowers suppliers to get creative in meeting company needs, minimizes the burden placed on procurement staff and creates truly collaborative partnerships between suppliers.
“Cost cutting will always be procurement's most critical function, but there's an even greater opportunity for executives to become more involved in the strategic vision of their organization,” said Richard Hogg, Account Director at BravoSolution. “Our primary resolution for 2012 is empowering the procurement professionals we work with to leave a more impactful mark on the company's bottom line and help them drive their businesses forward.”
Edited by Kevin Scarpati