Champagne is getting cold… The time for New Year’s resolutions is in the air.
Management is preparing budgets and is setting goals for next year. Sales, Marketing and Finance departments play an important role in this. But, what about Procurement? Are they also included? Normally yes, because usually, most companies deal with expenses that have to be cut. Their every-year “strategic” goal is realizing cost-savings.
But, are these cost savings really the way to drive your business forward?
In our previous blog post, we talked about the new role of Procurement. Based on those principles, here are two simple reasons why you should include your Procurement department in your strategic goals for 2018:
- They have direct contact with your suppliers. From the entire organization, they are in the best position to negotiate better purchasing programs or to make specific requirements (for instance e-invoicing campaigns and new – or missing – invoice information).
- They have a global overview of the internal spend. The visibility to analyze the overall demand or to identify “waste” is in their hands.
Now, imagine you can buy what you need at the best price and quality. Imagine you have the correct data in your invoice and as consequence accelerating your invoicing -and approval- process.
Partnership with your suppliers. Better deals. Early payment discounts. Shorter month-end closings.
A happy finance team. It sounds like a new year resolution to us!
Do not waste your goals focusing on low value targets, like freezing computer upgrades, cutting office supplies, in other words: cost-savings. Focus on the big wins instead.
Invest in your Procurement team. They should be the best negotiators and analysts in your organization. The policy “watcher” is the role of the past. They are now your internal consulting team.