Business Process Re-engineering: Improving Procurement Processes

Business Process Re-engineering 1
BUSINESS PROCESS REENGINEERING
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Business Process Re-engineering 2
Part 4: Business process Re-engineering
According to Luca (2014), Business process re-engineering refers to the process of
redesigning the main business process of an organization in order to achieve efficiency and
effectiveness. It involves the analysis of the current business processes in order to uncover
weakness such as unproductive activities. Once the weaknesses are determined the existing
processes are redeveloped to deliver value to the customers.
GAAM Company has weak procurement processes which are characterized by workflow
challenges. It can be re-engineered by first formulating procurement goals and objectives which
may include; providing an uninterrupted flow of materials in the organization, buying the best
quality materials at the best price, buying from reliable buyers, among others and use of
procurement information systems to enhance good workflow by guiding the procurement
department in its daily operations and integrating it with suppliers and other organization
departments (Chang, 2016).
Determination of GAAM’s purchasing needs should be redesigned so that priority of
purchase can be given to critical goods (Chang, 2016). All the organizational department should
be required to submit their purchase needs to the procurement department in good time and
clearly state the urgency of each product using an Enterprise resource planning system in order
to minimize purchasing delays, eliminate redundant business processes, and enhance proper
documentation of orders.
The buying process should be redesigned to incorporate issuing of tenders and adoption
of internet buying. The organization should define all the required metrics that the potential
suppliers should meet before bidding for the tenders so that the organization can put off