With the rapidly growing business environment, the demand for purchasing officers is also rising in every business sector. Boosting the efficiency of your procurement will result in cost savings to your organization. Perhaps, the procurement manager shall apply straightforward attributes and strategies with a specific end goal to procure goods at lower rates. Here are some of the tips we would recommend if you are looking for solutions to boost your procurement efficiency. By: https://mavenvista.com/

1. 11 WAYS TO BOOST YOUR
PROCUREMENT EFFICIENCY
Excerpts From: https://medium.com/@mavenvistavendx/11-ways-
to-boost-your-procurement-efficiency-e7fcebb5a4f

2. Introduction
Are you a Procurement Professional indulged in the purchasing of goods or services for
your organization? If yes, then you might always be wishing to increase the efficiency
of your procurement procedure.
With the rapidly growing business environment, the demand for purchasing officers is
also rising in every business sector. Boosting the efficiency of your procurement will
result in cost savings to your organization.
Here are some of the tips we would recommend if you are looking for the solutions to
boost your procurement efficiency.

3. 1. Build better relationships with the Suppliers
An upbeat and satisfied supplier is itself an asset to the organization.
If you are familiar with the supplier for a long period of time, it will be easy for you to
determine their negotiation pattern and supplier behaviour. This makes it easy for you
as a procurement professional to deal with him.
Although, there is always an option of onboarding a new Vendor. But, this process is
time-consuming and would require you to invest your resources.
You must always take care that they are paid on time and should often appreciate
them for their skills and services.

4. 2. Enhance your Network
Enhancing your network will give you an exposure to new ideas. Thus, you shall include
and consult the stakeholders from other teams while taking a charge of any project.
Apart from that, the good relationships you will form within the organization, plays a
major role in building trust, giving a boost to efficiency and in a quick workflow.
Many Hands Make Light Work.
Apart from that, there is always an option of growing your network through blogging,
LinkedIn, reading blogs and connecting with the people working and leading in your
domain.

5. 3. Think twice prior releasing the PR
Prior to releasing the Purchase Requisition, you shall confirm that whether there is a
need for material/goods or note.
It is essential to have a track record of the inventory available.
Only after confirming the need, you shall release the Purchase Requisition.

6. 4. Utilize your Analytical and Negotiation Skills
Managing the Vendors is an art of Procurement Officer. You are required to smoothly
communicate with your suppliers regarding the quality, technical specifications,
negotiations and delivery of the material to your premises.
Therefore, you shall enhance your problem solving, communication, analytical and
negotiation skills in order to achieve maximum benefit for your organization.
In order to become a better procurement manager, you shall also understand and
respect the supplier’s point of view.

7. 5. Keep an Eye on Global Market Trends
Often, there are circumstances when the rates of the material which you are acquiring
increases in the market.
The reasons for the increase in rates are dependent most of the times on global and
sometimes on the local market trends.
Therefore, as a procurement professional, you must always have an eye on the global
trends and shall acquire the redundant material when it’s cost in the market is low.

8. 6. Regularly Train Your Team
In order to gain the maximum output from your team, it is necessary to invest in them.
Thus, you shall always train your team with the latest and ongoing innovations in the
field. This would result in their knowledge enhancement.
Furthermore, the discussions and meetings at a consistent interim will make them
straightforwardly recommend new thoughts and innovation they have come across.

9. 7. Standardize and Centralize your Procurement
Standardizing your procurement procedure helps in the better management of the
inventory.
Apart from that, it will also be helpful in the proper management and utilization of the
inventory available in the organization.
Whereas, centralizing the procurement will help in PR Aggregation.
Because of the PR Aggregation, the quantity of materials to be acquired will increase.
This will open up a scope for better negotiation expanded amount of material.

10. 8. Focus on Total Cost of Ownership
Often it happens that the procurement manager goes for the vendor which is offering
the lowest rates. However, it is not the best practice always.
There are various other costs involved while procuring the goods including Freight
Value, Packaging Cost, Import Duty, Payment Terms and other Taxes.
Thus, you shall consider all these values while purchasing a product.

11. 9. Make Plan for Primary & Secondary Sourcing
Always procuring a specific material from a single vendor offers better rates. But,
sometimes, it might happen that because of circumstances, the vendor isn’t able to
deliver the material to you on time.
In such cases, you shall be readily available with the database of the vendors who can
supply material to you in urgency.
Another option is distributing the quantity, through the share of business of a Quotation.
Where the maximum quantity will go to the primary source and the remaining quantity
will go to the secondary sources.

12. 10. Reduce Your Expenses
Get a complete overview of the Vendor’s Negotiation Pattern, Payment Terms and Delivery
Period. It helps in the better negotiation and in determining the rating of a Vendor.
Make the process of Vendor On-boarding simpler, automated and quicker.
Establish a product information management (PIM) system for the transparency on the
specifications of the products to the vendors.
Keep a track record of all the decisions, delivery details, vendor behavior in a simple
database format. Keep in mind, the data quality matters the most!

13. 11. Upgrading to E-Procurement
With VENDX, you can evaluate the Vendor through Vendor Evaluation, calculate and monitor
your spend through Spend Analysis.
It also allows the Vendors and Buyers to communicate easily with each other through E-Mails
and SMS.
If there is any confusion while accessing the platform, you can always drop a message to our
support team through live chat available on the platform.
Our solution is providing solutions to all of the queries as discussed above. Get in touch with us
on sales@mavenvista.com for knowing more.