The Possible Things to Know With Procurement Process

Procurement productivity is a Way of measuring the efficiency of your department, processes and people. It is often defined as the ratio between inputs and outputs. The more output you can get from a given input signal, the higher your productivity. However, your productivity can be significantly reduced if any sort of wasteful activity happens because this will mean that you need increased input to get the same output you have enjoyed before. Here are seven possible sources of waste in procurement procedures.

  1. Delay. This could be an internal client waiting for procurement process to assist them with their buying requirement; a report that is not delivered on time; or taking too much time to respond to a request. The charge to Procurement is that internal clients could choose to do it themselves next time rather than involving you.
  2. Duplication. An example of this is where you must re-enter copy or data information into another system because the two systems do not speak to each other.
  3. Unnecessary movement. If a Process means that you must queue many times between activities or you do not receive a 1 stop service then unnecessary motion was produced. Processes should pull work through when capacity is available rather than force you to take work to the action.
  4. Unclear communications. This Waste is the result of needing to seek clarification prior to taking actions or confusion about how to carry out an action. This wastes time in having to find the reply to your questions.
  5. Incorrect inventory. Being Out of stock, being not able to get precisely what was required or needing to use a replacement service are examples of waste from wrong stock.
  6. Missed opportunity to retain or win customers. A speedy and efficient service is the best way to win the hearts and heads of both internal clients and have them returning for more. This would not occur if the suppliers of the procurement service do not establish rapport, dismiss their clients and are unfriendly or even impolite.
  7. Errors in service. This Results in a faulty service to internal clients and generates work to rectify the situation.
  8. Once you have drawn all the tasks and questions or decisions, draw another box with rounded corners and write within end.
  9. To check that you have everything from the process, ask somebody else who’s knowledgeable about the process to test it and amend as required.
  10. You can now review the Process, searching for tasks which may be replicated and so eliminated or portions of the procedure which could be improved.