How to make procurement more efficient

The process of making procurement more efficient is neither straightforward nor one-size-fits-all. It can change based on the organizational definition of what aspect of procurement stakeholders are trying to make more efficient. However, any procurement strategy can be made more efficient by streamlining the procure-to-pay process, implementing procurement technology solutions, and fostering strategic thinking.

Automation of routine tasks that involve manual heavy lifting, such as requisition, PO, and invoice management, three-way matching, and payment processing, can help reduce manual effort and associated errors. By streamlining the source-to-pay process, stakeholders can avoid inconsistencies and eliminate maverick spend once and for all.

Regular spend analysis can help spot consolidation opportunities, negotiate a better contract, and even help optimize category management. Digital approval workflows that are rule and role-based will reduce bottlenecks and speed up the procure-to-pay cycle.

Rather than focusing narrowly on cost reduction, stakeholders can shift their focus to total cost of ownership, creating more strategic value. By regularly reviewing procurement KPIs and supplier performance, procurement teams can improve the delivery, quality, and responsiveness of their procurement plans.