Kronos

THE IMPORTANCE OF A SKILLED PROCUREMENT MANAGER FOR YOUR BUSINESS

A procurement manager is often tasked with planning, coordinating, and dealing with buyers and purchasing departments in various organisations.

Procurement is more than just purchasing, although the two are often used interchangeably. While this lack of distinction doesn’t have too much of an impact on smaller companies, the larger your company grows and the more established it is, the distinction between procurement and purchasing is more significant in your everyday operations.

In my experience as a business consultant, I’ve seen how companies oversimplify the role of a procurement manager. In every business that maintains a procurement arm, this is a component that can result in significant value addition if handled efficiently and intelligently.

The success of your procurement function, ultimately, comes down to the skill of your procurement manager.

The role of a procurement manager includes ensuring the continuous optimisation of the procurement function. It is also their responsibility to align procurement operations with overall business goals, assist in the growth of the company, and the achievement of short and long-term business objectives.

As a result of procurement’s significance, small changes can have a huge impact on a business’ profitability.

Cost optimisation within the procurement function can optimise your business’ overall financial standing and boost your procurement success. A skilled procurement manager will also be able to achieve cost optimisation without compromising on business performance.

Your procurement manager will maintain relationships with your external suppliers

Post-pandemic procurement efficiency will be driven by the relationships between a procurement manager and a business’ suppliers.

COVID-19 saw a breakdown in essential supply chains around the world, highlighting the most vulnerable parts of our procurement infrastructure. The companies that survived the economic downturn and shutdown of nonessential services were the ones that had more personal relationships with suppliers, ensuring the continuation of their services throughout this unprecedented crisis.

The impetus to maintain a stable relationship with suppliers is high, and the responsibility for initiating and maintaining this contact will fall to your procurement manager. A skilled procurement manager will see the value in these interpersonal relationships and prioritise their development.

Supply chain resilience is driven by the effectiveness of your procurement manager

Supply chain resilience is a necessity in these unpredictable times.

The modern definition of supply chain resilience refers to a company’s ability to manage risks in the face of uncertainty and challenges. A company that enjoys supply chain resilience may even gain an advantage from certain disruptions.

A resilient supply chain is able to withstand crises and this is driven by three major factors. These include your crisis management team, the digitisation of as many operational processes as possible, and the consistent rollout of digital technologies across the board in ways that enforce accountability and transparency.

Ensuring transparency throughout the procurement process

A transparent procurement process is the best way to lower the risk of procurement fraud and the possibility of inconsistent or inaccurate information being passed between different points in the supply chain.

A skilled procurement manager will see the value in transparency and strive to maintain it in every step of the procurement process. This transparency gives way to greater efficiency and a streamlined process through which business needs are met in a more efficient and effective manner.

Enjoy the expertise of a procurement management team with Kronos Group

The procurement experts at Kronos Group are skilled at driving transformation and providing guidance through our clients’ Procurement 4.0 journeys.

Some of the services provided by our dedicated procurement consultants include:
– Category strategy and innovation
– Strategic sourcing
– SRM: Audit, performance management, contract management, and risk management
– Performance monitoring
– Procurement business partnering

Our services are also geared towards helping your business get through and recover from crises in pragmatic and sustainable ways. Brace your procurement function for the full impact of COVID-19 with Kronos Group’s expertise.

Get in touch to schedule a meeting with our procurement professionals and discover the impact a skilled procurement manager can have on your company.

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