Effective procurement requires the utilization of sound business practices that maximize value to the organization through the acquisition of goods and services.
This follows the old adage that the Procurement Department’s role is to deliver the right material (or service) in the right amount to the right place at the right time and at the right price. You can do this by employing well-conceived strategies — a plan to enhance competitive bidding, for example—that leverage clearly defined processes to manage the supply base. As a procurement professional, you will be expected to conceive and implement strategies that employ best practices.
Employing best practices in procurement ensures that the procurement professional and ultimately the organization make correct decisions. This means that an organization must develop plans that are in alignment with its goals and best interests. Frequently, these plans evolve from well-defined sourcing strategies developed to help the organization achieve its overall objectives. In turn, sourcing strategies rely on a clear set of tactical procedures to ensure their implementation.
At the root of these tactical procedures are the day-to-day methods the organization employs to convey its requirements to the supplier. Many organizations refer to these processes as standard operating procedures (SOPs) and maintain them in formalized document libraries.