In most cases, inside the company, there is a deep-rooted understanding of procurement, which is reduced only to savings. The purchasing department is not considered of strategic importance and its role is perceived as purchases, if necessary. If the right products are delivered on time at the lowest price, then it should be so, if not, everyone thinks that the purchasing department is not working well.
Sounds familiar? If so, there is simply no culture of procurement in your organization. Its implementation can lead to innovation, greater customer satisfaction and increased profitability when it used properly. Unfortunately, the formed culture of purchases in organizations is very rare. But, on the other hand, this fact gives an advantage.
After all, if you implement it earlier your competitors, the business will only benefit.
Procurement Culture implementation: basic steps
1. Streamline the procurement process
Obviously, it is difficult to start the organization of a procurement culture, if the company does not have a well-organized process inside the department.
It is important to understand that you can’t simply transfer an existing process to some system, and everything will work out like a well-established mechanism. Most likely, there are unnecessary actions, and you need to get rid of them. Make it as simple as possible for each employee to understand.
Very few companies know their business processes from A to Z. Therefore, this task may seem difficult for you. You can always ask help from a Business Analyst. It will help to build the right process taking into account the specifics of your company.
The best option if such a specialist works at the software vendor company that you’ve selected. He/she has great experience in this sphere and he will help you to choose the most suitable solution for you.
Business analyst support may require additional payment if the company-developer does not provide a Business Analyst and/or Customer Success Manager for each client.
2. Changing the decision-making model in procurement
Most often, values and behavior models in the whole company and, in particular, the purchasing department, come from top management. In our opinion, this approach is outdated.
The main driver in the procurement process should be the end user (employee or customer). After all, top management does not know that the employee needs some kind of product or software to better perform their responsibilities. Naturally, the business owner or the purchasing director keeps the function of controlling the requests for adequacy, but in no case should be their initiator.
3. Involving staff from other departments
Believe us, people like the teamwork, but only if such cooperation does not provide any additional inconvenience. If employees of other departments don’t understand what is happening in the purchasing department, whether their request is handled, at what stage it is, it causes only annoyance and disappointment.
Most of all, employees don’t have an integral picture of all the company’s business processes, they perform only their function. Based on it, your task is to make the work of procurement specialists as much as possible visible and accessible to all. After all, they are here to support, help and improve the effectiveness of colleagues from other departments. With regular assistance, various procurement participants can understand the strategy and each other’s needs.
The procurement process transparency and clearance for all company employees became extremely important in the modern world. Initially, the process of changing the procurement culture seems complicated and lengthy. You can automate the processes at each stage of procurement with the help of specialized software.
In addition, you will get the qualified help of the Business Analyst and the Customer Success Manager, this will simplify the task of organizing the procurement process in a few times.