Common Procurement Mistakes to Avoid

June 9

2015

Running a successful procurement department isn’t something that generally happens overnight. In order to get this department to an optimal position, it’s important for there to be clear goals in place. In addition to setting clear goals for what the department should focus on achieving, it’s also important for everyone who works in procurement tobe aware of common mistakes. By knowing what’s most likely to go wrong, every member of the team can keep an eye out for procurement mistakes and correct them if they ever come up.

The Most Common Mistakes That Have Been Brought Up ToUs:

Since we are in a position that allows us to speak with purchasing managers andother procurement professionals on a regular basis, we want to share the mostcommon mistakes that have been brought up to us:

Rushed Buying

This mistake is especially common in new businesses. And even if a business isestablished, it can still happen if the procurement department has just gotten up andrunning. The most common reason that rushed buying happens is because acompany or its procurement department feels like they need to get everythingordered as soon as possible. While securing what’s needed in a timely manner isimportant, that doesn’t mean the procurement process should be thrown intooverdrive. By focusing on a striking a balance between thoroughness andpromptness, procurement departments can do an optimal job.

Not Being Flexible with Plans

It’s definitely good for procurement departments to have plans in place. Not onlycan this keep things moving along, but it’s also a great way to avoid commonobstacles. While there are clear benefits to planning, that doesn’t mean members of

a procurement department should be tied to a plan forever. Since conditions canchange, it’s important to review plans on a regular basis. By making reviews partof a team’s culture, the department won’t have to worry about getting stuck in anynegative patterns.

Failing to Negotiate

Although we’ve already talked about negotiating on the blog, it’s a topic that’sworth bringing up again. Even though most procurement departments areconditioned to look for deals, far too many completely overlook the possibility ofnegotiating. Simply put, as long as it’s done in a reasonable manner, there’s noreason that purchasing managers shouldn’t negotiate.

Making Major Decisions in Isolation

One of the roles of a procurement department is to keep things moving alongsmoothly for the entire company. While it doesn’t make sense to seek input forevery purchase, there are times when the department should loop others into theconversation prior to making a final decision. By opening up the lines ofcommunication, a procurement department can avoid the wasted time andresources that go along with making an incorrect decision that then needs to becorrected.

Published By:Bellwether Software9900 Shelbyville Road, Suite 6BLouisville,Kentucky, 40223sales@bellwethercorp.comhttp://bellwethercorp.com