Agile Procurement Fundamentals
Ay?e G?rücü
Y?netim Dan??man? ve E?itmen| Tedarik Zinciri Y?netimi, Maliyet Optimizasyonu ve H?zda Mükemmellik
We are faced with a dizzying pace of change in every aspect of life. In the last few years, thanks to the events in the world and the acceleration of digitalization and globalization, the whole world is affected by the developments. Therefore, our business processes cannot and should not remain the same. In order to respond quickly to rapidly changing conditions, we must work on agility in all our processes so that we can keep up with the market. The purchasing function, which is one of the most important operations of a company and has a direct impact on the finance and production of the company, should also be reviewed.
What is Agile Procurement?
When we say agility, we mean that companies respond more quickly to changes in the market and target audience. In this context, agile purchasing means that the purchasing function can reorganize itself quickly and the processes are optimized.
The efficiency of purchasing processes is no longer focused on savings, but on the satisfaction of business partners and suppliers. It is important to establish relationships with suppliers based on trust and cooperation,?taking into account?the interests of both parties. Of course, while you want to bear the lower cost, your supplier also wants to sell at a higher price; however, it is possible to make agreements that will satisfy both parties,?taking into account?your total costs and with the right pricing strategies. That's why you need agile purchasing. A purchasing department with agility will satisfy its supplier, while at the same time reducing costs by adapting to a dynamic market.
How Can You Transform Your Purchasing Department?
First of all, agile methodology needs to be understood in detail in the department. We cannot?take action?on something we do not fully understand; it can lead to wrong practices when we?take action?with incomplete information. For this reason, we need to start by knowing what we are doing and why we are doing it.
The next step is, of course, digitalization. Thanks to the monitoring of stock markets and raw material prices, continuous data collection and analysis, and automation of routine works, it is possible to make more accurate decisions with up-to-date information. Since changing conditions can be followed instantly, processes can be updated faster. At the same time, the team can spare more time for work that can produce more value, as it will get rid of the repetitive workload.
The last thing I want to talk about here is to increase the durability of the supply chain. You know the expression “Don't put all your eggs in one basket!”. The reflection of this saying on the purchasing and supply chain means making all purchases from a single supplier. We saw this clearly in 2022; problems in supply stopped production in the automotive industry, issues in logistics caused the products with high demand not to be supplied. For this reason, it is necessary to diversify the supply chain, take precautions against the problems to be experienced and distribute the risk. To do this, you must develop collaborative relationships with your suppliers; you can even carry out innovation and product development projects together. Thus, you can establish deeper ties with your suppliers.
At the end of my article, I would like to point out that agile purchasing is a very broad subject. There is an extensive academic literature on this subject, many success stories to review, and case studies of failed initiatives. It is very important to get consultancy on such big issues and projects that require a serious change within the company. If you wish, you can reach us?here?https://rahuda.com
and benefit from our training and consultancy services based on real data and rich industry experience. Hope to see you in my next post.
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