Thursday 17 September 2015

Analysis is the most important part of Procurement

Authored by Usama Shahid

Procurement is an important part of your business so you need to undertake regular procurement analysis to ensure that you are making the best use of your hard earned money. Procurement analysis is the analysis of what goes on in your purchasing department, are they keeping to the purchasing strategy and are inventories being kept to the optimum levels.  With respect to suppliers, are the best suppliers been chosen and are they offering the best prices and terms?

Whatever the size of your company you must analyze costs and inventories.  As you become larger and your purchasing needs become more complex, you should be analyzing delivery times, maverick spending and whether you are making the best use of your suppliers.  Let us look at each of these procurement analysis needs individually.