Optimizing the procurement process
In purchasing there is high potential for savings for companies through partnerships, better processes and contracts. By this way a company can achieve savings in purchasing, reduce inventories and risk.
We can help you to improve your processes in purchasing. If there is need, we can restructure your purchasing department.
There is need for rules who can order what and when. The approval process should be lean so that the process remains being effective and practical. It should be ensured that the control function can be carried out in a meaningful way.
Specialist departments and purchasing should work together and support each other. The purchasing department should have a basic technical understanding to purchase effectively and invite successfully for tenders.
Often it is difficult to determine which department is responsible for the inventory in a company. In any case purchasing has to mind inventory levels. Replenishment lead time, actual and consigned inventory, safety stock and lot sizes have to be considered. A collaboration of the involved departments also increases effectiveness.
A division into strategic and operative purchasing is common and reasonable. Strategic purchasing establishes partnerships with suppliers and provides contracts as a basis for the operative purchasing.