Succeeding with New Procurement Strategies

This presentation explores the importance of procurement strategies, the advantages of procurement software, and new trends in the procurement process. It discusses ways to save money and manage cash effectively in the procurement process. The presentation also covers the areas of sourcing information, procurement research, and the decrease in supplier bases. It concludes with the implementation of effective strategies in companies to meet the shifts in the global economy.

Succeeding with new procurement
strategies

 It includes the finding, acquiring, buying goods and
services and it helps in ensuring to provide the
best prices to buyers, quality and quantity can be
compared with competitor’s.
 Procurement software are used by the
professionals for managing the organizational
spending's. Effective procurement strategies helps
in achieving the objectives for the growth
Procurement strategies

 Ease of administration
 Long term cost savings
 Easy monitoring of Spending
 greater control of organization-wide
spending
 Increase in productivity
 Security
 Flexibility and functionality
 Saving time
Advantages of procurement
software

 Effective procurement strategies are required
for delivering savings
 Developing of commercial skills
 Effective understanding of big data
 Embrace ethics and sustainability
 Managing risk
 Digitization of supply chain
 Artificial Intelligence
Procurement strategies

 Aviation
 Banking and financial services
 Consulting
 industrial manufacturing
 media and entertainment
 Logistics and transportation
 Retail and leisure
 Telecommunications
Implementation of procurement
process in different sectors

 Process insourcing
 Working capital management
 Tightened spend management
 Improved cross-functional relationship
 Higher savings target
 Contract reviews
 Technology investments
Importance of procurement
processes

 Pervasive Talent shortage
 Continuing Rise of Digital Technologies
 Cyber security Concerns- Growing in crime is the serious
issue for the professionals to consider in supply chain.
 Fact-based Procurement Decisions- decisions which are
taken by professionals must be fact-based.
 Impact of Tariffs- Strategic sourcing is required in
procurement
New trends in procurement
process

 Effective technology is required by the
procurement professionals
 Constant change is required to run the
business and procurement team is required
to play a strategic role in the growth of the
business. Team is required to focus on the
cost reduction and risk mitigation.
 Areas which are required to be focused are
efficiency, accessibility, and sustainability
for making the effective purchasing
decisions.
Advancement in
technology

1. Cloud based pattern- procurement is
required to move towards the cloud. It helps
in offering single-tenant cloud, on-premises
and hybrid solutions.
2. Analytics- Analytically driven approach in
procurement helps in providing innovation
solutions to tackle with the challenges like
taking uncertain decisions, inefficient use of
resources. Data driven insights helps in
demonstrating more values and
organizational change.
Advancement in technology which are required
to be adopted for competitive advantage

3. Collaboration- it includes the shifting of
procurement technology for procuring to pay
solutions.
4. Mobility- in the process of procurement,
professionals can adopt the change facility for rapidly
accelerating trends, for allowing the stakeholders to
access the and taking part in the process of
procurement function at any time in an efficient way.
In procurement strategy, mobility must be adopted
by professionals for selecting the effective vendor.
5. Digital procurement- The shifting of operations to
digital approach helps in bringing new advantages
and it helps in focusing on high-impact and value
driven activities.

 Reducing travel budgets
 Headcount reductions
 Restricting individual technology
 Working capital optimization
 Demand management
 Low-cost country sourcing
Best ways to save money in the
process of procurement

 It is necessary for the organization to save
money as well as manage it properly.
 Working capital optimization is the main
focus of the organization for managing the
cash in the procurement process effectively.
 Improvement in cash flows
Cash management in process of
procurement

 Economic conditions effects on the
sustainability and corporate social
responsibilities of the organization as it
holds the value for the stakeholders.
 Logistics and transportation area includes
the most sustainability in concern of
environment and carbon emissions savings.
Corporate social responsibilities

 E-procurement is an effective way for
managing the process of procurement.
 Procurement software option is available
with professionals for providing the
solutions and growing the process for
further production.
 It includes the enterprise resource planning,
SAP, Oracle etc.
E-procurement

 Spend analysis- It is a software which helps
in uncovering the purchasing patterns and
identifying the opportunities for saving
costs, improving performance and
increasing efficiencies.
 Supplier discovery- It helps in searching the
suppliers for meeting the criteria to meet
the capabilities, location, supplier diversity
status.
Procurement software

 E-Sourcing software helps in enabling
electronically solicit quotes and proposals
from suppliers in real time
 Supplier information management helps in
maintaining and collecting the information
of suppliers which includes the contacting
to suppliers and ensuring efficiency and
accuracy.
E-sourcing and supplier
information management

 Inventory management is essential for the
internal and external customers. It help sin
establishing the requirements of inventory in
present and future for avoiding the
overstocking.
 Tools of inventory management are ABC
analysis, Barcoding, Radio frequency
identification tags, and software.
 Software programs helps in keeping the record
of complete inventory and stock management
system.
Management of inventory and
its tools

 There are different areas for sourcing of information for
the effective procurement.
 It includes the analysis of marker conditions and
directives includes the government and company level,
locating the suppliers sources, and making the suppliers
performance rating for the effectiveness.
 Analysis of market condition is necessary for forecasting
the long-term demands of the products and it helps in
giving the guidance of supply sources.
Sourcing of information

 It is essential for the procurement
professionals to make the enough research in
the field of procurement by systematically
gathering, recording and analyzing the
information which are related with the goods
and services.
 It is crucial in the global market because of
change in technology and economic
circumstances and e-procurement is effective
as it helps in providing the real-time data to
professionals.
Procurement research

 Decrease in suppliers base
 In future, telecommunication, utility and
pharmaceutical are expected a greater
reduction in suppliers base.
 Procurement professionals are expecting a
decrease in future.
Supplier bases in different
sector

 Centralization in companies helps in
allowing more control in procurements.
 Better control on costs
 Trend of outsourcing and offshoring is
increasing
 Implementation of effective strategies in
companies helps in meeting the shifts in
global economy
 Change in outsourcing strategies
Centralization

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Reference