FreshBooks cloud accounting app

Managing Procurement Process at Effective Rate

procurement management

Image: Mark Hunter / Flickr

Management of procurement process is a method wherein services or goods are obtained from external suppliers. The process involves, three main steps i.e. order, receive and review. Today, with the rising number of companies thinking seriously about conducted procurement at a professional level, a new job that of a procurement consultant has become known.

The procurement consultants play a major role in outsourcing products and work. With the help of the procurement consultants, you can also make an effort to reduce your costs incurred through procurement. Cost management solutions offered by these consultants are a boon to companies, as the solutions offered help in speeding delivery and getting a feel of the market

Procurement management is handy when it comes to ensuring the products are as per requirements that have been put down during the planning process. To reach the stage you need to make sure you have obtained the products in the predefined period, the level is as decided and most importantly, the products are within your budget. During the procurement process, you would also need to ensure that your relationship with your supplier is effectually managed.

To be able to manage the procurement process effectively, you would need to work in tandem with the suppliers. However, before that you would need support from your board or the top management of your company, as the decision to back or turn it down rests with them. Simultaneously they would decide on funding the project.

Make sure you maintain good relationships with the suppliers as well as your board. Over time, the suppliers will be able to achieve the set goals for supplying the products or services as per the deal and the standards maintained by your company.

A key aspect of effective management of procurement is to ensure the solutions offered in the form of product or services are sustainable over a long period. For this, you would need to check your company’s ability to maintain the supplied product/service, whether the supplied product has passed the safety criterion. Most importantly, you must assess whether in the end the benefits of opting for the said products or service outweigh the costs incurred.

Effective management of procurement is easy if you have a clear plan of what you want to do and how would you go about it. In the process, you must keep yourself abreast with the recent happenings in the field of procurement.

About the Author: Al Kraus is the Marketing Lead at Procurement Management & Solutions. Procurex plays a key role in ensuring manufacturing companies with overall profitability and growth. Take hold of cost management consulting that will deliver sustainable operational efficiencies and secure a competitive advantage for your company.

featured video

You might also like

News

Considering the Impact of Contactless Payment Technology

Contactless payment capabilities at checkouts have been available for longer than the average consumer will realise. Indeed, some Mobil gas stations were using such technology as far back as 1997.

News

Exclusive Q&A with Jeet Banerjee

Starting up a business is nerve-wrecking. There are so many things unknown to you and your self-doubt often get the best of you. Not stopping there, you are often need

News

Can Your Business Cope with an Unexpected Closure?

They say that if you fail to plan, then you should plan to fail. Those are wise words, but what would you do if your carefully thought out plans weren’t