Spreading the Procurement Mindset to the Rest of the Organization

Procurement leaders are always on the lookout for new opportunities, especially when it comes to saving on spending and making the business operate more efficiently. As such, they have many insights about effective management that could be valuable to the rest of the organization.

There are also opportunities for procurement to collaborate with other areas of the business to help all parties achieve their goals. After all, many of procurement’s categories impact the entire organization.

Here’s what you need to know about how you can spread the "procurement mindset" to other areas of the business.

Addressing Opportunities in High-Impact Categories

Certain categories have a wide impact across the business, or they may work directly with specific departments. For example, procurement may be responsible for managing relationships with external marketing and ad agencies, but the marketing department may interact with them daily. Technology vendors, such as a cybersecurity firm, may interact mainly with the IT department, but the procurement function may have insights into how to improve that relationship.

Procurement can help other areas of the business set goals for their relationships with high-impact categories like these. This could help the company further take advantage of cost savings or even develop strategic partnerships with the most promising providers.

Making Vendor Management a Company-Wide Effort

Procurement plays a primary role in vendor management, but other stakeholders can contribute to this effort. When leadership is in the loop about how vendors are complying with organizational governance, they’re often in a better position to make high-level decisions about these vendor relationships.

Similarly, stakeholders may have insights into how best to use vendors to execute projects within the organization. Procurement can demonstrate how each touchpoint with the organization’s vendors represents an opportunity to generate more value, while leaders can demonstrate how it tracks, measures, and aligns their goals with the vendors under their purview.

Generating Shared Objectives

Altogether, this allows procurement and other stakeholders to develop shared goals and objectives. These objectives could relate to cost savings, but they could also relate to obtaining better products and services through collaboration.

For example, the procurement department may feel that a vendor relationship is solid because it’s able to take advantage of cost savings and manage the relationship effectively. Leadership, however, could set goals to improve the relationship based on their view of the quality of the goods and services being delivered.

Once established, both parties can work together toward a shared goal, such as negotiating for a better deal or working to align the vendor with company standards.

Learn How to Evangelize Procurement

Procurement has a lot to offer the organizations beyond cost savings. Many of the core values that procurement professionals follow can also provide benefits to the rest of the organization. When every business unit is well-versed in procurement’s goals, they can all work together to achieve savings and reach milestones.

If you’re interested in learning more about how you can evangelize the procurement mindset, don’t miss the next Procurement Indirect West conference. It’s happening from April 11^th to April 13^th at the Sheraton Grand at Wild Horse Pass in Phoenix, Arizona.

Register today to claim your spot at the conference.