The 10 essentials of modern procurement

The purchasing department plays an essential role in the management of supplies within a company. Today, to be competitive in the market, it is essential to set up an effective purchasing strategy and to manage procurement operations in a professional manner. The purchasing function, or purchasing department, is responsible for the supply of goods and services necessary for the proper functioning of the company. Buyers are responsible for sourcing suppliers, negotiating contracts, managing supplier relationships, and ensuring the performance of the supply chain.

Strategic Collaboration between Purchasing Departments and Internal Customers: Foundations and Responsibilities

Procurement departments need to work closely with internal customers, such as directors of various business functions, to understand their needs and help them meet them. Procurement management should also be aligned with the company's strategic goals. Group purchases must be consistent and meet the needs of all departments. It is therefore important to put in place a global purchasing policy, by identifying strategic purchasing families and by defining the levers to optimize costs. The purchasing manager plays a key role in implementing this strategy. He is responsible for purchasing management and the performance of the purchasing team. He must also ensure the management of non-production purchases, such as indirect purchases, intellectual services or even computer purchases. He must be able to manage purchasing processes and to optimize relationships with suppliers.

Optimizing Purchasing Performance: Strategic Selection and Responsible Management of the Supplier Panel

Selecting a panel of strategic suppliers is essential to ensure good purchasing performance. The supplier relationship must be based on trust, transparency and the search for mutual added value. Purchasing department must also promote responsible purchasing, by integrating social and environmental criteria into the purchasing process. It must ensure the digitalization and dematerialization of processes, in order to gain efficiency and reduce costs.

Procurement Outsourcing: Maximizing Benefits While Managing Supplier Risks

Outsourcing can also be considered for certain categories of purchases, in order to benefit from the expertise and capabilities of specialized service providers. However, it is important to maintain control over these outsourced purchases, to avoid supplier risks and maintain competitiveness.

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What are the 10 mandatory points for a modern purchasing department?

1. The Purchasing Director reports directly to the General Manager of the company.
2. Your Purchasing Department is responsible for the supply of “non-traditional”: areas such as intellectual services, insurance and mutual insurance, fleet management, installations and construction, temporary work and travel.
3. Purchasing participates actively, along with General Management, in the company's long-term strategic planning.
4. Buyers are only responsible for a small percentage of the company's purchasing expenses.
5. Logistics and related functions depend on the Purchasing Department.
6. “Maverick Buying” is a thing of the past (so-called wild purchases, i.e. outside the Panel).
7. When dealing with large and frequently used suppliers, contracts and price grids exist for all the goods and services that the business is likely to buy.
8. No major procurement process is conducted without the use of a multi-functional team and an eProcurement Solution.
9. You buy all over the world, and know how to express non-domestic expenses as a percentage of total expenses.
10. Your department has social responsibility and performance measurement goals.

Optimizing Supplier Relationships and Managing Purchasing Performance: Key Levers for Creating Value in Purchasing.

The management of contracts, disputes and supplier relationships is also a major challenge for the purchasing department. Streamlining procurement, massifying purchases and optimizing processes are all levers for creating value and improving supplier performance.

Purchasing performance must be measured and evaluated regularly, through performance indicators such as purchasing gains or cost reduction. This makes it possible to maintain effective operational management and to contribute to the creation of value for the entire company.

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The Fundamentals of Modern Procurement Management: Global Strategy, Strategic Selection and Measured Performance

The essentials of modern purchasing department are the implementation of a global purchasing strategy, the selection of strategic suppliers, the management of procurement processes, the promotion of responsible purchasing, the optimization of costs, the control of supplier risks and the regular evaluation of procurement performance. These are all key elements in ensuring the competitiveness and success of the company.