Driving Value through Procurement and Supply
Executive Summary
This report is prepared in response to company directors’ demands. It captures the instances in the procurement and supply function that can be addressed if the value is to be driven across the processes. The report begins by introducing a discussion on the trending and future aspects in the global procurement and supply business. It then proceeds to point out opportunities that exist within the function before creating a discussion on ways in which these opportunities can be exploited. One important aspect that shows up in the study is the significance of integrating stakeholder interests in the early phases of laying procurement plans. The other issue that shows up includes the need to align organizational operations to the most efficient practices and policies that recognize the needs of the present and the future generations. The report finally ends with a conclusion that stresses on the significant aspects of the discussion.
Driving Value through Procurement and Supply
Introduction
Apparently, supplier relations, value creation, innovation, external and internal collaboration, and business strategy alignment will shape the future of supply and procurement (Zycus, 2015). It is, therefore, imperative that the company finds better ways of driving value through supply and procurement. This report is on procurement and supply practices that should be emphasized or adopted if the value is to be driven across the supply and procurement function. In doing so, the paper will first discuss the roles and significance of supply and procurement before proceeding to review the opportunities present in the function that can create a better saving of efficiencies. It will then review some of the potential ways by which the department’s profile can be improved to reflect efficiency. Afterward, the procession will be made to lay down guidelines on how collaborations with stakeholders can be instituted early enough in procurement engagement. Finally, the paper will discuss the organizational practices that are indispensable for the procurement function to become more efficient.
A Review of Exploitable Prospects Opportunities exist for cost savings, branding, and quality optimization. Traditionally, the supply and procurement service has been responsible for helping the company obtain its raw material, components, and services from suppliers and vendors (Writer, 2015). The scope of its mandate covered the aspects of purchasing, sourcing, and a variety of activities ranging from the identification of reliable suppliers to the point of delivering supplies from suppliers to the corporation. So far, it has been instrumental in ensuring a consistent supply of demanded items besides helping the business to meet its operational, tactical, and strategic needs (CIPS, 2014). Nonetheless, these successes have been overshadowed by changing competitive circumstances that have also seen competitors optimize their competitiveness aggressively. Reports by Writer (2015) point out that the entry into Qatar market by international brands like Harvey Nichol has driven retailers into aggressive behaviors. There is hence a need to revamp the function by reviewing the function’s profile.
Approaches to Improving the Profile of the Supply and Procurement …
