Procurement function must consider following 6 points in their decision making to become a successful procurement organization.
- 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.
- What cost saving goals has been achieved by procurement function without compromising the quality of goods & service?
- Procurement role is dominant in analysing, preparing mitigation plan and managing supply chain risk.
- Procurement has to adhere to organization sustainability programs and socially responsibility initiatives. Procurement must fit with the organization environment and green objectives.
- 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.
- 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.