What Are the Goals of Procurement Management?
The goals of procurement management are generally to acquire goods and services with the highest quality at the lowest cost to create an end product. However, there are many goals and milestones along the way that need to be met to make this happen efficiently. For instance, every purchasing department wants to lower costs and be more productive, so these are concrete goals.
Globally, most purchasing departments have moved on from a paper trail and have decided to make their procurement processes digital, which means that they now must be able to navigate E-procurement software and eSourcing software with some intermediate ability.
Read on to learn more about procurement management goals, what the best procurement software may be for your needs, and how to implement it and get past the learning curve.
Finding Your Own Goals in Procurement
Every purchasing department is going to have specific goals of procurement management for their company.
Nearly everyone is going to have general, overall goals, like:
- Minimize risk
- Lower costs
- Increase quality
- Decrease cycle time
- Decrease the complexity of the process
- Increase efficiency
It makes sense that these goals will be native to anyone running a purchasing department because these are imperative to procurement. It is important to realize that these are end goals. It’s important to realize how to manage your department so that these expectations are realized.
Good eSourcing software can help you manage rogue spending and keep things standardized, transparent, and collaborative. The right kind of software for your needs allows you to analyze and run reports to implement cost-effective measures going forward. Instead of pecking away at a Microsoft Excel spreadsheet and trying to run analytics yourself, everything can be mapped for you all in one place—helping you meet your goals of procurement management much more easily.
Goals of Procurement Management: Vendor Management
One of the most important things about procurement is the relationship that you have with your suppliers. If you don’t run a tightly organized ship, your relationship with your vendors can suffer. This can easily trickle down and affect your customer relationships, especially when goods and services aren’t delivered on time because of a breakdown in communication.
If you’re wondering, “What is E-procurement in supply chain management?” it is your entire procurement process, except all of the processes are performed digitally. Vendor management in procurement is a huge piece of this puzzle.
Using software, you can create better relationships with vendors, and can manage risk and perform risk assessments more seamlessly. Many purchasing departments may be wary of moving to digital because perhaps they already have a great human negotiator on staff who’s great at negotiating when it comes to bidding and contracts. There’s no hard and fast rule that says you have to move everything to digital.
When you’re mapping out your own goals of procurement management, it’s okay to be flexible. Just realize that by moving most of your goals to an E-format, you can make your procure-to-pay process transparent, you can collaborate with more vendors on a more expensive and broader scale with more networks, and you can assess and manage risk management on a much broader scope.
To find out more about how EC Sourcing Group can help you tailor your goals of procurement management to better utilize your purchasing department’s full potential, give us a call today at 973-936-9672 or click here to schedule a demo.