Procurement process challenges part 2

Inflation going to increases your cost of Procurement, however good thing about inflation is that you known, it is going to be there & you can take steps to reduce its impact on organization; by storing major product, not sticky to a brand (For eg: Keyboard is created by Dell as Philips brand & both are equally good brand but other brand name you might not hear of ).

Look out for major deal given by vendor for clearing there stocks.

Agreement with supplier to provide certain product with fix price for time frame.

Have some people from economics dept, so that keen eye market movement & also give alert what is coming or might come with fact & figure, that will save tons of money. like human create inflation, which can be easy seen these people & it will give provide time to be prepare & be on better position.

Disaster is biggest challenger, for this your organization must have back plan & ready for it, must recent human created disaster is covid19 & it has created chip shortage in market.

Disaster bring two type of challenges, first is resource loss & second deal with shortage of supplies. Both are can be deal with box of thinking method & quickly to adopt that idea; if does not work, quickly shift next possible ideal.

Human resource itself very important because it take long time to develop these resource. Two major reason why human resource leave the any organization is first salary & second no growth or toxic environment to work.

To deal these are very easy on paper but difficult to have such Manager, who understand his each worker & make them comfortable. End of the every one has to work for living and give any person what he or she looking for & they will stick with the organization .

Time also play very important also, how much time you have to fulfill the requirement & this were planing come into play. so be ready with plan.

Rest of the points can be easy resolve, which I have written in my previous article. Procurement Dept is very exciting dept to work for & lot of room learning is there. Thank you.