Uncovering hidden opportunities in Procurement process is a call for fast-paced business environment and a key to direct business resources successfully. It carries a big array within an organization ranges from R&D and product development to supply chain engagement, demand forecasting, and marketing and customer hopes.

An optimized process realised through innovation will not only boost efficiency and reduce cost but also increase the organization’s grace in acknowledging market demand and consumer expectations.

Here are the value creating activities which will directly impact business profitability and make a remarkable difference:

Cross-Discipline Collaboration is important. Re-examine the roles of each department to know how it can be involved in the procurement process to assist innovation. Encourage cross-disciplinary collaboration so understandings from various business units can inform procurement trends.

Get leadership support so procurement is integrated into the long-term strategic alliances of the company.

Observe strategic customers by conducting market research and meet consumer expectations.

Analyse the manufacturing process to know core areas where innovation can lead to outstanding improvements in the organization’s operational efficiencies and profitability.

Cooperate with the finance department to understand profit margins so you can concentrate on innovation to carry huge impact on profitability.

Work with R&D department so the procurement process takes correct data of product development and manufacturing into account.

Understand expected outcomes in pricing, margin, and timing, as well as the selection of faithful suppliers and expectations on cooperation with internal and external stakeholders in order to optimize profits.

Make sure the procurement team is well informed of all the criteria and expectations of other departments so innovation will have an organization-wide impression.

Appoint an innovation manager to streamline procurement from various brands and business units, which can work with potential suppliers as a single point of contact to attain economies of scale, line up business objectives, and remove duplicity.