Corporate procurement teams are challenged to consistently bring real savings. Over the course of the fiscal year, they’re expected to maintain a high level of procurement expertise which not only saves money, but makes key stakeholders feel that their interests are being actively served.
But are procurement teams in a position to analyze their results over time, to ensure that they’re holding up their end of the infrastructure bargain?
A lot of that depends on strategy and deploying processes which inform all links in the chain, from shareholders to suppliers. Designing the right procurement strategy is crucial to empowering procurement departments to do their best work by continually delivering the anticipated cost reductions.
The architecture of strategy.
If the overall corporate strategy is designed on a Five Year Plan structure, then why shouldn’t procurement be similarly designed? Clear deliverables and expected outcomes all factor into how successful procurement can be. Providing a framework for that, within a timeline, is key.
Functional strategies of the organizational whole should be deliberately lined up with procurement’s objectives to ensure that those strategies are working together and serving all stakeholders, as projected.
The ability of a corporate procurement department to self-monitor to ensure that it’s on course resides in available resources and systemic maturity. These two factors create conditions whereby procurement is enabled to do its best work.
Regional or centralized?
If the organization follows a regional strategy, then so must procurement. The same is true of a centralized strategy. If the company is reaching markets with specific regional directives, then it’s imperative procurement follow that overarching lead, to ensure fidelity to it.
Similarly, a global strategy which is uniform, with no concessions to regional specifications, demands a global procurement approach. Both strategies have their challenges and advantages, but the key is that procurement be synced with corporate strategy to be successful and to bear the fruit expected of it.
Designing the right procurement strategy has some defining elements which shift slightly in particular instances (like the need for regional supply). One of the most important of these is the resources available to procurement. When the department has all it needs to analyze markets and performance, it will deliver, but making those resources available is the foundation of making it all possible.
Centerpoint Group – the strength of numbers.
Corporate procurement departments which are successful are heavily supported by the institutions they’re working within. When that kind of hands on support is lacking, or unavailable due to practical considerations, CenterPoint fills the procurement gap with the strength of numbers.
CenterPoint Group is a member-based procurement advisor which leverages the pooled resources of members to offer significant savings on a wide range of infrastructural needs, from vehicles, to fuel, to cell phones, to office supplies. Because there’s strength in numbers, we bring our members exceptional discounts on needed services and supplies.
Let us show you the strength of numbers.