7 Best Procurement Practices for Successful Organisations
In a rapidly changing business world, delivering the best standard of service in your organisation can be challenging. Whether you run a shopping centre, an office, a hospital, or a factory, implementing smart procurement practices will ensure quality service outcomes for your organisation. We have identified 10 best procurement practices that will help you to get the best value from your suppliers, improve your cost expenditure, increase your operational efficiency, and provide a better environment for your clients and customers.
1. Identify Your Organisations Specific Needs
Identity your organisation’s specific quality assurance needs by brainstorming with other skilled members of your management staff. Sit down with the workplace accountant to seek information on how your financial practices can be improved. Having multiple points of view on the day-to-day operations of your facility will give you a better idea of your cost expenditures and the number of suppliers you will need.
2. Encourage Feedback from Staff
Strategic sourcing of goods and services is not only important for the efficient daily running of your facility, but it also makes for happy staff members. So be brave and encourage feedback from staff on their working environment and even customers on the quality of the service they receive.
3. Ensure Supplier Excellence
To ensure long-term supplier performance excellence, you to need to consider a supplier’s quality of service, reliability, value for money, and financial security.
- Quality of Service
Conducting research on the supplier will help you to know what level of service the supplier provides, and do they consistently deliver quality business practices. Check to see if they have a good rating on approved supplier trade association lists, government websites like the NSW Department of Fair Trading, or see what other collegues in your industry say about the supplier, which will give you total peace of mind.
- Reliability
Reliability is key with supplier performance. When you have a broken toilet or you need new equipment, you want to be confident that your suppliers are reliable and provide the supplies promptly to your facility. It is also a good idea to have a few suppliers on your procurement list in case a supplier lets you down.
- Value for Money
Striking the perfect balance between cost and value for money can be tricky. Sometimes a low-priced supplier may not give the best value for money. Paying a higher price may or may not reward you with great results. Once again, conducting some supplier research will help you to get better value and expert service.
- Financial Security
A supplier needs to have a good cash flow to be able to continually deliver quality service outcomes. One way to ensure that they are financially secure is to do a credit or busness check on their business on the ASIC website.
4. Maintain Constant Communication with Suppliers
Maintaining constant and clear communication with your suppliers will make all the difference to a long-term supplier relationship. Talk with your supplier/s about your needs and how they can provide a better service such as contacting you as early as possible if they are going to be late arriving at your facility. A quality supplier will keep the lines of communication open and be dedicated to delivering fantastic service.
5.Streamline your Procurement Management with Smart Supplier Digital Technologies.
Having the right digital tools will result in successful procurement management. When you harness the power of smart digital technologies like the SuRe Application, your procurement sourcing and management processes will operate smoothly. Your staff will have fast access to invaluable data analytics. You will have a reliable, easy-to-access web-based tool that you can use to efficiently source and manage your suppliers anywhere, anytime.
6. Add Value to Your Organisation
You can add value to your organisation by doing what matter most for your organisation.
- Provide the tools, training and support for staff so they can continue to work smarter.
- Improve your financials by saving costs, releasing your cash flow, reducing risk by utilizing expert financial management software that specifically caters to your industry.
- Ensure that your organisation adheres to good compliance policies.
- Deliver reliable services to your residents by maintaining a top-notch living environment.
7. Network with Other Professionals
When you network with other professionals, like at the Procurement Week 2019 conference in Sydney, or attend an business support program in your area to learn new skills, your organisation will grow and thrive.
We hope that you have found these 7 Best Procurement Practices for Successful Organisations helpful to your business. If you have any questions about supplier procurement or the SuRe Application, please do not hesitate to contact us.
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