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To perform its duties effectively, your procurement department must indeed consist of competent personnel and rely on efficient processes, but it must also be well organized!

What is the foundation of a good organization for a Procurement department ?

Let’s review the key elements together:

1. Defining the department’s missions and objectives

A well-structured and well-organized procurement department begins with a clear definition of its missions, objectives, and the roles (positions) of the involved personnel.

2. Organization of tasks and human resources

A well-detailed organizational chart, resources, and functions will help your Procurement department perform better.

3. Competency Management

Within the Procurement department, the development of interpersonal skills (leadership and management) is essential to enable employees to effectively manage cross-functional relationships with internal clients, to better negotiate and build long-term partnerships on a win-win basis with strategic partners.

4. Defining an appropriate level of autonomy and reporting

To best manage supplier relationships, the Procurement department needs to be reactive, but also and especially proactive. In line with the operational needs of the company, it requires autonomy.

5. Implementation and monitoring of adequate procedures

A company’s purchasing department may have to manage a multitude of different purchases, depending on its stakeholders and the strategic choices of management. The implementation of common procedures, respected by all stakeholders in the company, is an essential step to improve the quality of service.

6. Dashboards for monitoring performance indicators

A policy and a strategy alone are not sufficient for the Procurement department to fulfill its mission and deliver the expected results. It is also essential to measure and manage its performance on a daily basis by implementing the right monitoring indicators, and reporting these indicators via dashboards.

Reducio invites you to take a few minutes to assess the quality of your company’s purchasing organization for FREE: access the diagnostic