Updated: Sep 30, 2019
3 tips that the Procurement contribution is real and benefits your business
In Procurement we constantly try to demonstrate to the Finance Director that we are delivering savings.
We consistently find ways to demonstrate that a pound saved is a pound of profit. We also try to shift the focus to our wider business contribution. Business Risk mitigation, Supplier insurance and Service assurance.
It is a never ending process that no other function has to endure: justifying our contribution to the business.
This is usually because of the way a finance function structures a companies budgets. We are often not allocated enough resources to find where our savings will hit the P and L.
We need to agree the rules up front. This requires powers of persuasion and influence and also use of our negotiation skills with the business stake holders and with Finance.
This requires that our traditional Procurement skills need developing into business leadership capabilities that focus on these 3 areas.
1) We need to be part of the budget setting process. Agreeing the year ahead where savings can be found and where they will impact budgets.
2) We need to maintain our relationships and credibility with the business stakeholders and not be seen as savings thieves.
3) We must demonstrate our contribution is tangible and that we have evidence of our work.
Procurement Central runs workshops in all areas of Procurement effectiveness that will demonstrate you and your team’s work adds value.