The essential role of procurement is to create added value in all aspects of the buying process from the bidding stage to actual payment for goods and services. A sourcing strategy that recognises and integrates all the various stages will deliver significant savings in time, money and resource. Many organisations do not make best use of their buying power to achieve significant procurement savings.
The keys to successful procurement start at the planning stage:-
Review the status of current contracts
Diagnose strengths or weaknesses in procurement capability
Prioritise the areas for change
Focus on high value opportunities
The traditional areas of procurement activity - aggregating spend, unbundling prices, focus on cost drivers, managing Purchase Order (PO) processes – when integrated with new practices, such as e-tendering and e-auctions, will significantly enhance the opportunities for improving supply management cost and process.
Reduced time for requisition to PO
Accounts payable harmonised
Reduced administration for management
An organisation will have the most leverage when procurement processes and spend capability are fully integrated and will achieve improved savings when best practice principles are applied.
Managing Spend to Best Effect-Strategic Sourcing is an integrated part of the overall procurement process, which interacts with Requisition to Pay.
The Right Service at the Right Price -Sourcing concentrates on analysis and negotiations to contract with and manage the suppliers of goods and services at best cost, highest quality and most effective process.
Control Throughout the Process - Requisition to Pay is a straightforward process to manage goods and services from ordering to receipt, review and payment in the most efficient manner and at the best time.
