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Tradogram Procurement Management



The Nature of Procurement: Variations in Buyer Requirements



Posted on Wednesday, June 22, 2016 by Breelyn

It's easy to consider procurement as a function that remains relatively unchanged from company to company. You could assemble a ragtag sampling of CPOs from a variety of industries and expect to hear the same stories about requisitions gone awry, supplier innovation (or lack thereof), and the glory of economies of scale. This is just the nature of procurement!

But wait. Since the topic was mentioned, let's take a moment to discuss nature. Pretend you're a botanist and you've just acquired two plants. You know exactly how to proceed, right? Sunlight, air, water, fertile soil, and love (the latter only if we're being sentimental). A balanced amount of everything and your plants are thriving! Unfortunately, this isn't the case, since you forgot to take into consideration that one is a cactus and the other is a water lily.

This is a mistake often made in procurement: the assumption that one process can be duplicated across companies with no negative effect on unique day-to-day operations and/or customized budgets. To avoid this catastrophic error (and killing your garden at the same time), review our checklist of factors that create Potential Variations When Procuring. Select the factors that require the greatest amount of attention for your organization.

Corporate objectives: Is your team more interested in securing goods/services for the lowest cost, or is quality a bigger concern?

Risk tolerance: Are you a secure MNE or small family business?

Item complexity: Will you be purchasing emeralds from Colombia or lumber from around the corner?

Budget restraints: Are you capped at $100 or $100,000?

Policy requirements: Is purchasing protocol flexible or rigid?

Company size: Are you a large company with many buyers, or a small company with one?

Supplier selection criteria: Is due diligence a lengthy process, or fast and minimal?

Time: Do you have months or days to make your purchase?

Market conditions: Are conditions currently stable, or in flux?

Environmental concerns: Are there any? If yes, how much of a priority are they?

Now you've determined an assortment of factors that will influence your specific procurement needs. Through this awareness, you'll be more equipped to select software with features that speak directly to your requirements - no extra fertilizer if it isn't necessary, especially when you could save money using compost. Those eggshells from Bob's boiled egg lunches can finally be put to use.


Interested in learning more? Contact us to discover how Tradogram can grow efficient procurement specifically for your company.



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