5 ways procurement professionals can add value to their business right now

Article by Achilles

Procurement is not just about purchasing goods and services. At its heart, the role of a procurement professional is about making sure operations continue as smoothly as possible all year round. This means establishing requirements, researching the market and evaluating vendors, as well as negotiating contracts and managing risk.

What does this mean aside from significant responsibility? It creates a myriad of ways that procurement professionals can actively add value to their business.

Colleagues and business leaders outside procurement are not always aware of the daily activities that the function carries out, or the corporate priorities it can support. This often means that there are a number of lost opportunities that could help increase efficiency and productivity.

Here are five things procurement professionals can do to drive growth and innovation.

1. Cut costs
99.9% of businesses want to cut their costs without damaging their profitability. That is the holy grail of good business, and effective cost management is an important part of purchasing goods and handling supply chain management.

Through sourcing the right suppliers, procurement staff actively help reduce their company’s outgoing costs and operational risks. However, finding reliable data and insight on potential suppliers – so that you can get an accurate understanding of the risks and opportunities involved – is often costly and time-consuming.

Our communities help reduce these costs by giving buyers up-to-date supplier data for buying organisations.

How does the Achilles community model work?

2. Drive innovation
Procurement professionals hold a powerful position within a business. As the people that choose which suppliers to work with, their choices define the type of supply chain they operate in.

By choosing suppliers that add value and drive innovation, procurement teams can actively place their company in a more competitive position. Promote the kind of changes that you want to see by choosing suppliers that use the latest equipment, technology and processes.

Read more about our pre-qualification questionnaire for suppliers.

3. Utilise good data
There is a difference between collecting as much data as you can and basing your decisions on high-quality supply chain data. For a complex supply chain that involves product development, engineering, packaging, delivery, sales, forecasting and more, using your data correctly creates insights that drive revenue and increase efficiency.

You will find this difficult if you have a mountain of complex, poorly verified data. It may seem like you spend all day crunching the numbers without learning anything about how your supply chain actually operates.

We help our communities build a complete picture of supplier operations and risk exposure, not just by providing data but validating it too. This ensures everyone in a supply chain has the best foundation to base their decision making on.
Data is there to make things simpler and less complex. If you are feeling hindered by multiple, complicated inputs and analytical processes, a portal like the one we use could immediately start saving you time.

4. Drive growth in new markets
The best opportunities for value growth are sometimes found outside your established markets and supply chains. Previously untapped markets are often full of eager companies looking to innovate and develop at a rapid rate.
But moving into the unknown requires a lot of research, knowledge and assurance. Many of our communities are global, which means procurement professionals can quickly identify, assess and contact suppliers who have demonstrated experience within a particular market.

By creating a central hub of information, our communities help buyers to make informed decisions about suppliers, wherever they are located.

5. Help with CSR compliance
Corporate social responsibility (CSR) is a big deal in business. The reputational damage that can come from non-compliance with an area of CSR – such as the UN Sustainable Development Goals – because of its business supply chain can often be irreparable.

For this reason, a detailed pre-qualification process is imperative for procurement professionals. It’s not just about asking questions but also conducting audits where necessary. Obtaining and validating supplier information using an effective approach facilitates better and more agile decision making.

Our communities create collaborative relationships between buyers and suppliers. Parties work together to drive improvements in supplier performance and compliance with CSR policies, including those relating to sustainability, health and safety and the environment.

 

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