In today’s supply chain industry, there’s a massive pressure to do better – lower the costs, bring in more revenue, gain a larger consumer audience, and the list goes on. Simply being good is no longer efficient, you have to be better. That’s why you have to follow your industry’s best practices, and then take it a step further. Here’s a list of best practices that every procurement department should attain if they wish to reach higher success levels.
Establish the Council
In the procurement industry, it’s critical that supply chain strategy is in alignment with the company’s strategy. A governing supply chain council should be established in order to ensure that the alignment of both strategies are mutually beneficial. To be the best supply chain organization, the council is established with a few people: the leader of the supply chain organization, business managers, corporate executives, and other company leaders. Both the company and the supply chain must be represented on the council. The supply chain council is essential for successful communication and implementation of established strategies.
Hire the Right People
To run a functioning supply chain organization, you need staff to manage the department. This is where procurement specialists and managers come into play. Your supply chain staff play a crucial role to the company’s success and reputation. Having the right leaders can allow a company to discover and plan creative approaches to new strategies that have potential to drive the company’s supply chain into greater success. During this process, placing hired staff under the direction of the supply chain leader can have a positive impact on the entire department as well.
Set Up Proper Technology
A company can only be as effective and efficient as it’s technology allows it to be in today’s day and age. Companies run on software that houses data, and ultimately guides how the company functions. With supply chain management, a company would only hinder it’s potential to be successful if they run on software that limits their ability to do work. In your procurement department, make sure that you’re always running on the latest software and technology for the highest form of functioning as an organization.
Supply chain and procurement are all about connecting with people. You have to have connections in order for supply chain to be successfully managed. As you form alliances, these alliances can become your key suppliers. Even after you seal a deal with a supplier, a best practice is to keep in communication with that contact long after the deal is sealed. This builds mutually beneficial relationships and allows both parties to avoid the feeling that they were taken advantage of. Healthy relationships between your department and its alliances are vital to your company’s success.
Be Collaborative and Creative in Sourcing
Creative thinking is a must-have in the supply chain management world. You have to use out of the box styles to come up with various approaches for your strategy and problem solving. Utilizing the power of collaboration can bring even more creativity and better solutions by the larger number of brainpower focusing on the task at hand. This also means collaborating with clients or customers. It’s always best to work off of constructive criticism. After all, the most important thing in the supply chain is to give the people what they want.