Strategic Purchasing Management

management

Most organizations spend more than 50% of their business income on the purchase of goods, services and works, or even more.  

Managing these expenses (ensuring that the best value is obtained for every penny spent and treating suppliers like your own employees) is critical to the success of your business. As a result, strategic purchasing management is absolutely necessary.

Strategic purchasing management is a partnership between your users (those in need of spending and having the details on what is to be spent) and purchasing specialists.
This management requires the application of a number of processes, including:

  • The gathering of conditions and specifications related to the needs of the company,
  • The choice of provider to meet these needs (the source),
  • The contract management¬† : the fact of signing the contract with the selected supplier, then bring it to term,
  • The purchases to pay : the fact to collect the requests, send purchase orders and pay suppliers on time.

Here are some tips to ensure excellent management of the strategic buying process:

  • Create and maintain a separate and well-respected shopping service,
  • Make sure that your buyers are well trained, especially in skills and communication. A good sense of contact is a key asset when it comes to dealing with internal or external users,
  • Develop a good organizational culture and collaborate between services,
  • Make sure you always know how much and what to spend on,
  • Actively manage your suppliers, especially those that are costly and critical to the success of your business
  • Implement appropriate systems and tools to support all purchasing activities. For example: e-auctions can speed up purchases and make the process fairer,
  • Find ways to measure the performance of your purchases,
  • Promote sustainability: make sure that what you do today will help you in the future.

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