There is a traditional view of the procurement and supply chain (P&SC) function as spend-obsessed and constantly watching the bottom line. But over the last 10 years, I have noticed a shift change in this opinion as this crucial area continues to add value to the business world. Below are my top 10 reasons for having a team of strong procurement and supply chain professionals in your business:
1. Cost Control
Having an effective team of procurement and supply chain professionals means that your organisational processes and costs will be easily controlled, which in turn contributes to stability and growth in your company
2. Financial Friends
Ensuring that your finance team are strongly aligned with procurement, rather than at odds with them, will mean stronger back office functions which will produce improved public performance to customers and other stakeholders
3. Organisational Advantage
Any cost saving that improved procurement processes make can enable any saved money to be invested into other budgets which can assist with challenges such as talent acquisition, sales, marketing etc.
4. Correct contracts
Having the right procurement and supply chain professionals also ensures effective contract management which mitigates against risk or sudden loss of business
5. Safe Supply
Effective management and regular review of the company supply chain safeguards against overspending and unrealistic purchasing
6. Strong Stakeholders
Having a robust supply chain provides strong stakeholder mapping, both internally and externally and helps achieve complete clarity around purchasing trails
7. Essential Emotional Intelligence
Many procurement and supply chain professionals use Emotional Intelligence in their everyday business. It can be employed to approach and manage the supply chain and will help to meet expectations and ensure realistic delivery and collaborative working
8. Clear Communication
Communicating in your supply chain that you understand supplier needs will help improve relationships and create smoother processes for the business
9. Competitive Advantage
Efficient procurement and supply chain management will help to retain and increase a competitive advantage as your company delivers its products and services faster than anyone in the marketplace.
10. Not a Blocker
The most crucial thing to understand about the procurement and supply chain function, both internally and externally is that they must be seen as a partner to all, not a blocker.