Purchasing Management: Procurement is an underestimated strategic lever

 

Effective purchasing management goes beyond the creation of a wish list of materials and services to support the production cycle. Those who consider Procurement as non-strategic area, external to the production logic, waste a precious opportunity. Involving purchasing team in decision-making processes can improve business results and increase profits, as well as give a positively impact on cash flow, on the quality of production and on fixed capital in stocks (avoiding the accumulation of extra raw materials and semi-finished products so to invest the capital in a more profitable way).

 

Relying on an IS Consulting Temporary Manager for the development of a procurement office or of a multi-team of consultants to accomplish a radical change of the buyers and their vision within the company, means transforming a simple transactional process into an elaborate process, which requires collaboration between departments and an integration of company software, as well as an end-to-end control of activities (starting from the definition of the needs of raw materials to be used in production, up to the payment of invoices, passing through inventory, logistics and transport procedures) and the development of strong and consolidated relationships.

How does an
IS Consulting ‘s
Professional intervene?

    • He is constantly on the lookout for technical and economic offers within the reference market to identify the best suppliers, excluding, following the vendor rating system, those that could reserve high risks of both a technical and financial nature;

 

    • He thinks from a perspective of collaboration with suppliers by improving supplier management from a relational point of view rather than economic. He doesn’t work focusing purely on the price negotiation, his goal is to create a closer strong strategic relationship;

 

    • He integrates suppliers with company software to automate business processes making the all staff’s work easier to handle.

This increasingly competitive and unstable global market, take fast and flexible services and quality products for granted.

For this reason, Procurement strategy must be reconsidered in a strategic key as a benefit for the entire Supply Chain; assessing the behavior of financial solidity and the quality of suppliers are essential elements for the quality of purchases and for a successful business.

 

Do you need an experienced manager or a new strategy to manage your purchases?