The objectives of a World-Class Procurement Department move far beyond the traditional belief that procurement’s primary role is to obtain goods and services in response to internal needs. To understand how this role is changing, they must understand what purchasing is all about, starting with the primary objectives of a World-Class Procurement department
Give Best Service to Internal User
To give full support to company’s operational activities, World Class Procurement Department is required to understand company’s business requirement, so that they can buy or purchase product/services at the right price, from the right sources, At the right specification that meets users needs, In the right quantity, for delivery at the right time and to the right internal user.
Internal customers of purchasing include manufacturing department, physical distribution centers, engineering and technical groups, research and development, information technology, transportation and other services.
Manage the Procurement Process and the Supply Base Properly.
To manage the procurement process and supply base properly A Word Class Procurement Department must understand how to identify opportunities, how to manage internal operation and absolutely, they must be able to achieve procurement objectives.
a. Identify opportunities
In evaluation and selection of suppliers, procurement department must ensure that all of procurement activities should go through the approved procurement processes, so that they may ensure to purchase correct goods/services. In this case, procurement department can get input from engineering and other functional department. As widely known by all of company stake holder that procurement process is most important in company business, all of company business activities related to procurement cannot be performed without involve procurement department. In other word, other departments cannot build communication with supplier without known by procurement. Increasing using of sourcing teams may increase procurement performance. Procurement department acts as the primary contact with supplier.
Once procurement department get material/work requisition, they must review the specification or statement of work. Procurement department may be able to suggest alternative standardized materials that can save the organization money and perform periodic review of requisitions can allow greater leveraging of requirements.
Procurement department determine the method of awarding contracts and shall manage the supply base such which one of current supplier is competitive, identification of new potential suppliers and develop relationships, improvement and development of non-competitive existing suppliers.
b. Manage internal company operations properly
As procurement department is the most important department in a company, a procurement manager shall manage procurement engineer properly, so that they can give best contribution to the procurement activities. In addition, developing and maintenance of policies and processes, introducing and leveraging appropriate technology and systems, defining procurement strategy and structure, developing plans and measures, providing procurement leadership to the organization, providing professional training and growth opportunities for employees also can increase procurement performance.
Achieve procurement objective through:
Leadership of procurement for the organization
Sourcing management
Ownership and accountability for sourcing processes
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Communication of purpose, process and pay off
Collaboration and partnering
Teamwork Develop Strong Relationships with Other Functional Groups
Develop Strong Relationships with Other Functional Groups
Support Organizational Goals and Objectives
Give Best Service to Internal User
To give full support to company’s operational activities, World Class Procurement Department is required to understand company’s business requirement, so that they can buy or purchase product/services at the right price, from the right sources, At the right specification that meets users needs, In the right quantity, for delivery at the right time and to the right internal user.
Internal customers of purchasing include manufacturing department, physical distribution centers, engineering and technical groups, research and development, information technology, transportation and other services.
Manage the Procurement Process and the Supply Base Properly.
To manage the procurement process and supply base properly A Word Class Procurement Department must understand how to identify opportunities, how to manage internal operation and absolutely, they must be able to achieve procurement objectives.
a. Identify opportunities
In evaluation and selection of suppliers, procurement department must ensure that all of procurement activities should go through the approved procurement processes, so that they may ensure to purchase correct goods/services. In this case, procurement department can get input from engineering and other functional department. As widely known by all of company stake holder that procurement process is most important in company business, all of company business activities related to procurement cannot be performed without involve procurement department. In other word, other departments cannot build communication with supplier without known by procurement. Increasing using of sourcing teams may increase procurement performance. Procurement department acts as the primary contact with supplier.
Once procurement department get material/work requisition, they must review the specification or statement of work. Procurement department may be able to suggest alternative standardized materials that can save the organization money and perform periodic review of requisitions can allow greater leveraging of requirements.
Procurement department determine the method of awarding contracts and shall manage the supply base such which one of current supplier is competitive, identification of new potential suppliers and develop relationships, improvement and development of non-competitive existing suppliers.
b. Manage internal company operations properly
As procurement department is the most important department in a company, a procurement manager shall manage procurement engineer properly, so that they can give best contribution to the procurement activities. In addition, developing and maintenance of policies and processes, introducing and leveraging appropriate technology and systems, defining procurement strategy and structure, developing plans and measures, providing procurement leadership to the organization, providing professional training and growth opportunities for employees also can increase procurement performance.
Achieve procurement objective through:
Develop Strong Relationships with Other Functional Groups
Support Organizational Goals and Objectives
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