Elements of Successful Procurement Strategy

Procurement function must consider following 6 points in their decision making to become a successful procurement organization.

1. Procurement success is measured by what extend procurement function has been contributing to organizations financial success and revenue growth. How deeper it has participation in organizations innovation strategies.
2. What cost saving goals has been achieved by procurement function without compromising the quality of goods & service?
3. Procurement role is dominant in analysing, preparing mitigation plan and managing supply chain risk.
4. Procurement has to adhere to organization sustainability programs and socially responsibility initiatives. Procurement must fit with the organization environment and green objectives.
5. Procurement functions should become a responsible link of the supply chain by Integrating and collaborating with other links of supply chain. Ensure smooth flow of information across the supply chain.
6. Managing supplier relationship with ethical procurement activities is a key measure of procurement success. Most importantly, all procurement activities should be focused on boosting companies brand value in the market.

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