Procurement Strategy

Procurement Strategy

Procurement Strategy: Delivering costs savings & efficiencies through effective procurement

Do you need to achieve a business advantage through more effective procurement? Tumai Procurement can help you design a purchasing strategy that meets your business needs.

The objective - If cost reduction is your focus, there are many areas you can explore. From the cost of capital through to staffing, production processes and inventory management - the chances are that most organisations can achieve immediate savings in their bought-in goods and services.

With the rationale to outsource non-core services increasingly compelling, many organisations are finding that strategic, well-managed procurement is a sure route to securing significant cost savings and efficiencies. However, whilst the opportunities are significant, so are the risks, if it is not run well.

Effective procurement is a complex activity, which needs the devotion of expertise, time and resources to deliver value through to your bottom line. Procurement should not just tick a 'compliance' box. Instead, it should be ready to fulfil a strategically important role in the business. Is your procurement function ready to step up to this challenge?

The challenge - defining your strategy - To understand how effective your procurement is, you need to look at how it supports your overall organisational strategy. What are your top-most objectives? Are they focused on bringing new products or services to the market, by rationalising your staff or premises, increasing exports - or some other key priority? How can you support these objectives with more effective procurement?

There is no short, definitive list of considerations that ought to be included within your procurement strategy. Priorities change over time and strategies must be reviewed and revised to reflect changes in circumstance and focus. So what you choose to consider will be particular to you. You may need to review how you make procurement decisions and who is authorised to make those commitments; how to maximise value through the use of competitive tendering and contracts; your processes for dealing with suppliers - or wider issues such as compliance, corporate & social responsibility, too.

The solution - Whatever your priorities, Tumai Procurement can help you develop measurable targets that define success. Our expertise spans large scale procurement engagements, providing organisations in both the private and public sectors with the necessary business intelligence to apply knowledge-based decision making to the purchasing process.

We review, develop, design and implement key category spend and procurement strategies for our clients. Our non-emotional and auditable processes deliver real savings and will stand up to any level of scrutiny. So whether you have a procurement approach that needs reviewing and improving, or have nothing formalised to date, we can support you with best practice guidance and advice.