Startups are not only disrupting the Procurement but also the pace it operates with. The challenge in Procurement is that the procurement has to run if everyone else is running. One of the Founders of a former global startup once said “Let the builder build and autonomy should be given to every single person in the organization to do what is right for the company”. You should do whatever is required to make your company successful rest everyone will support. Procurement team has no choice but to speed up & start delivering along with others.
The standard golden triangle of procurement includes time, quality, and cost. Business will tell the procurement that the cost has to be low and to drive the cost Procurement needs time.
GOLDEN TRIANGLE OF PROCUREMENT
The cost can be brought down if you spend a good amount of time on it. If you need high quality then the cost goes up. The industry benchmarks are present which give the time required to convert a requirement into PO. If you say 3 days for the PO then you need to know why so & back it up with bench marking.
In a high speed organization, any one moving fast will try to balance between three things. The speed is the essence but if you want to catch the speed you have to look at the hierarchy. Can we reduce the hierarchy? Level doesn’t mean if someone is given the ownership he is the one who needs to do it. Sourcing committee may not be required for a high speed Procurement. Yes, you should have procedures but they may not be as exhaustive as an SOP or can have exception process listed.
Do you follow seven steps sourcing process and the answer? Yes. Do you follow in every case? May be not, it all depends upon business requirements.
Seven Step Strategic Sourcing Process
Strategic Sourcing Steps
In order to Speed up Procurement you need to have easy to use tools, simple processes, standard and simple RFP structures, one cost with ROI, tail end speed management and RPA for transaction process.
You need to take actions quickly in the Disruptive world. If you are a Taxi company and you take the Decision that you will take away company phones from the drivers. Every Day you delay to take action you will lose thousands of Dollars. Always have a strong workforce of contractors with you for quick turnarounds of requirements.
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