Successful procurement is a multifaceted process that hinges on several key factors that contribute immensely to entire process. Here are some of the traits and elements that contribute to effective procurement:
People Skills: Procurement is highly collaborative, requiring strong relationships with stakeholders, vendors, contractors, and suppliers.
Affinity for KPIs and Metrics: It’s a measured activity, with a focus on delivering specific benefits promptly and managing “the spend” using spend data (information dealing with a company’s expenditures on goods and services purchased from external suppliers) effectively.
Negotiation Skills: Natural negotiation abilities are essential, as procurement involves constant negotiation with various parties – vendors, contractors, and suppliers etc.
Unconventional Thinking: The ability to think outside the box and find creative solutions, especially when negotiations reach a deadlock.
Process and Procedure Generation: Deals need to be tracked, filed, and revised regularly, necessitating a commitment to robust processes and procedures.
Curiosity: A drive to continually explore new ways to save money, secure supply, and stay informed about new market trends.
Tactical Acumen: Being a good tactician is foundational for developing innovative solutions and strategies. Deploying skillful planning and executing tactics or strategies in the procurement process.
Additionally, successful procurement strategies often focus on:
Cost-effectiveness: Ensuring the organization gets the most value for its money.
Quality and Value: Acquiring goods or services that meet the organization’s standards.
Timely Delivery: Securing supplies in a timely manner to avoid operational disruptions and effective delivery led time.
Risk Management: Identifying and mitigating potential issues with vendors, supply chains and in the entire supply chain management system.
By integrating these traits and strategic focuses, procurement can significantly contribute to an organization’s efficiency and success.