Let’s celebrate the end of growth at any cost. After the celebration, how can you create a new culture that promotes growth efficiently? We examine procurement process, adoption, spend visibility, spend efficiency, capital efficiency, and more to help you create a proactive plan for exponential development. We’re sharing the secret recipe for regulated, good growth.
Spoiler alert: It’s all about having the right components, following sensible processes, plus a little enthusiasm. Be careful not to hurry up and burn.
Why Procurement Must Improve Spend Efficiency
Growth is good, but not at too great a cost. After all, procurement is a strategic activity that boosts profits. Your procurement practices should increase corporate value and bottom line growth.
That’s why expenditure efficiency matters. Companies must modify their culture to prioritise growth and efficiency above expansion at any costs. Wondering how to implement this at your company? Simple strategies to increase your procurement process and enhance expenditure efficiency.
8 Ways to Grow Your Procurement and Spend Efficiency
Find inefficient procedures to boost efficiency: Examine your processes for red signals like bottlenecks, etc.
- Combine supplier lists: Supplier streamlining simplifies more than just you. It will minimise maverick and tail-end expenditure, ease the administrative load of maintaining a large supplier base, and boost operational efficiency.
- Teach your staff: When employees understand the objective of procurement procedures, they can navigate them. Educating your staff will reduce maverick spending and encourage purchasers to choose recommended vendors.
- Set clear supply base expectations: Communication problems are the major cause of buyer-supplier disputes. Time and money are wasted due to unclear goal expectations.
- Automate purchasing: Automation reduces maverick expenditure and lets procurement manage company expenses in real time, improving visibility and accuracy.
- Standardise procurement processes: Without them, you can’t improve efficiency or track cost. Ad-hoc procurement procedures may work for startups and smaller organisations, but a larger team needs a more formalised approach.
- Increase purchase efficiency by sourcing locally: Local sourcing boosts sustainability, decreases shipping time, and supports the local economy.
- Simplify supplier onboarding: Leaner, quicker procurement results from simplifying the vendor identification, assessment, qualification, and onboarding process. It will also simplify your suppliers’ life.
- While cutting costs, procurement professionals are becoming more nimble, creative, and innovative. They also boost supply chain variety and sustainability.
