In case you hadn’t heard, modern procurement has moved well beyond the purchase order. Now a sophisticated and strategic beast, procurement means everything from supply chain infrastructure to supplier development to outsourcing to strategic planning.
This post is about the importance of a strategic sourcing process. Does your organization qualify as a modern procurement department?
A practical approach
According to President of the Lunney Advisory Group, Dr. Soheila R. Lunney, the strategic sourcing process consists of 4 phases:
- Organizing the sourcing team
- Collecting, studying and analyzing data toward recommending solutions
- Negotiation and plan implementation
- Implementation of an agreement and a strategy to sustain the process
Working from a business plan, a procurement team remains more focused on the task at hand. When producing this document becomes a yearly event, it’s also a sound tool for making key adjustments to the coming year’s plan, encompassing regulatory changes affecting the supply chain, mergers and acquisitions and shifts in corporate goals.
The team is thus organized around a common purpose and direction. From there, data comes into play. By examining and analyzing analytical trends in the procurement process, it’s more readily apparent where reform is needed. Data is where the procurement process becomes sophisticated and fine-tuned.
With a clear direction guiding their actions, the procurement team is then well-prepared to negotiate for desired outcomes and put their plan into action, with an enviable, fully-vetted supply chain.
Understanding how the procurement process will be sustained over time is a key function of the team and continual consultation of compiled data provides all the information required to make that happen.
Being a procurement professional isn’t just about POs and waiting for requisitions to float down the food chain. It’s about playing an active decision-making role that contributes to overall corporate culture and stated objectives concerning social realities and sustainability.
By taking a leadership role in this respect and being part of cross-functional teams, procurement is placed in its rightful position as a driver of cultural imperatives and a source of key data supporting their work and its relevance to the whole.
So, what does all this mean?
Simply, it means that if you’re seeking support that takes your procurement to the next level, you need the CenterPoint Group solution.
We take a dynamic approach to procurement which places data analytics at its center and committed account management at your disposal.
CenterPoint Group – welcome to modern procurement
As a trusted procurement advisor, we have a lot of tools in our toolbox and they’re all dedicated to getting our members best-in-class pricing on every item they purchase through our services.
No matter how small your order is, CenterPoint analyzes every item to ensure that the agreements we’ve made with suppliers are being honored. Every time.
With a collective, indirect spend of $850 million, you get the power of numbers and the clout of a major player.
Ready to procure like a boss? Contact us to discover the power of numbers.