Procurement is hard, here's how to make better sense of it

Procurement is hard, you can make sense of it with this:

1. Don't mistake POs & card swipes as procurement.

--> It's part of it, you need a mechanism to buy, but everything before that purchase matters more.

2. Don't mistake contract reviews as procurement.

--> Definitely do them, partner with legal and ensure both companies are reducing risk and agreeing to fair terms.

3. Don't mistake cost savings as procurement.

--> Get a great deal, pay for the value & ROI you'll receive, but don't forget to build long-term partnerships.

4. Don't mistake vendor management as procurement.

--> It's way more than onboarding and collecting vendor data, it's a lifeline to building the things you sell, know them intimately.

5. Don't mistake sourcing as procurement.

--> You always want to be aware of the market, the new tools and services, and looking for a competitive advantage.

6. Don't mistake category management as procurement.

--> Know within any given function and department the detailed view of what you buy and from whom, also why.

The list goes on.

And the answer is it's all of them.

Each with their own nuance.

Depending on the company, it'll be shaped and molded to best fit that organization's mission, vision, and goals.

It takes a great leadership to build it.

So, make no mistake, it's hard to be in business without it.