6 Quick Wins in Procurement You Can Implement Today

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Previously on the Procurement Leaders Playbook, we discussed 5 common weaknesses in procurement teams.?

This week, we’re diving into how small, strategic changes can make a big impact by diving into 6 quick wins in procurement you can implement today.?

These simple but effective strategies will help you enhance efficiency, reduce costs, and strengthen supplier relationships without requiring major changes to your operations.?

Here are 6 quick wins for you to implement in procurement today:?

1. Review and Refresh Supplier Contracts

How long has it been since you last reviewed your supplier contracts? If it’s been a while, you might be missing out on cost-saving opportunities. Start by identifying contracts that are nearing renewal or have outdated terms.?

Renegotiating even the smallest details, such as delivery timelines, minimum order quantities, or discounts for early payments, can lead to significant savings.?

• Practical tool: Use this special report on “Out-Negotiating Suppliers” to extract the most out of your supplier negotiations.

2. Standardize Purchase Orders (POs) and Automate Repetitive Purchases

Many procurement teams waste valuable time manually processing purchase orders for repetitive purchases.?

By using pre-approved templates and setting up automatic purchase orders for frequently ordered items (like office supplies or regular raw materials), you ensure consistency and free up your team's time for more strategic tasks.

• Practical tip: Identify your top 3 most frequently ordered items and set up automated purchase orders with your suppliers.?

3. Streamline Your Purchase Approval Process

Lengthy and complicated approval workflows can be a major bottleneck in procurement. Take a moment to review your current approval process. Is it necessary for every order to go through multiple sign-offs? Are approval times being delayed due to outdated processes or lack of automation??

Streamlining your purchase approvals can significantly reduce cycle times and help your team move faster without sacrificing control.

• Practical tip: Evaluate if you can reduce the number of approval stages for low-risk or small-value purchases. Set up approval thresholds so that only significant purchases require higher-level sign-offs.

4. Schedule a Quick Supplier Relationship Check-In

Strong supplier relationships are the backbone of successful procurement. Sometimes, a quick check-in with your key suppliers can uncover opportunities to improve terms or solve recurring issues.?

• Practical tip: Identify your top 3 suppliers and schedule a short call with each to discuss current performance and explore opportunities for improvement or future collaboration.

5. Consolidate Your Supplier Base

Too many suppliers can lead to inefficiencies, lack of consistency, and missed cost-saving opportunities.?

By consolidating your supplier base, you can simplify your procurement processes and gain leverage to negotiate better deals. Fewer suppliers mean more significant orders for each, which often results in bulk discounts or improved service levels.

• Practical tip: Review your current supplier list and identify where you can consolidate. Focus on categories where multiple suppliers provide similar products or services and consider reducing your supplier base by 10-20%.

6. Run Regular Training Session(s) for Your Team

Sometimes, the quickest win in procurement is ensuring that your team is equipped with the right knowledge and skills.?

A 2-day training session on negotiation techniques, procurement best practices, or the use of procurement software can yield immediate improvements in performance. Plus, it boosts team morale by showing your investment in their growth.

• Practical tip: Set aside time every 2 months to implement an intensive training session on a relevant procurement topic. Check out multiple trainings for your team to implement here!?

Become a Certified Procurement Professional

If you found these insights valuable, you should not miss our upcoming Certification Program “Certified International Procurement Professional (CIPP)".

• Date: Nov 9th to Dec 22nd, 2024
• Program Details: Learn More here!?
• How to Register: Start Your Application here!

Don't miss out on this opportunity to advance your procurement skills and drive tangible results for your organization!?

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