Procurement Performance – What do You Need to Know?

Friday, February 19th, 2016

Procurement performance lies at the heart of business performance. Who needs to know that the performance is of the highest standard? The board of directors must know if they are practicing appropriate corporate due diligence.

Are the supply chain risks under control? First of all the risks need to be identified – no easy feat. The particular risks are exacerbated when offshore procurement is involved. Foreign currency, shipping, quality management, continuous improvement and pricing are some of the facets that require attention. Whatever the risks are, mitigation strategies must be developed.

The contracts that exist with their parties always warrant a scrutiny. How many contracts are on the suppliers’ contract terms and conditions? When were the constraints last reviewed or negotiated? Can you terminate for convenience, and if you can, with what consequences? Is procurement accountable for ensuring the contractual risk is under effective control?

The procurement profession does not require continuous professional development. This begs the questions: How is your procurement team availing themselves of the latest techniques and approaches? Is life-cycle costing a consideration for your business? If they are, who negotiates this facet of the contract?

There is a catalogue of IT disasters in the procurement of hardware, software and systems. Unsecure payments are often made one year in advance. Why? There are financial low levels of viability provided by the supplies. Why?

               Can we help you?

We can conduct a review with your procurement team. It can be done in a relatively short space of time and for a modest cost. Our managing director, Brian Farrington, would welcome a discussion with you about the nature and conduct of a review. You can call him on 01744 20698.