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Best Practices in Procurement

Posted 4/17/2018

*This list is not exhaustive; I’m highlighting some best practices based on experiential learning. Please add to this list based on your experiences.

ü  Address social and environmental responsibilities in your procurement requests. What can we do for our Communities and our Planet today?

ü  Review procurement policies and procedures regularly. Practices, Standards, Marketplaces and our legal environment changes; have your policies and procedures kept up with the pace of change?

ü  Aggregate and analyze the data obtained from purchase card use so that you could extract more value through system contracts for key commodities.

ü  Practice continuous learning.

ü  Share what you know with others, network and be engaged.

ü  Document your actions and outcomes. Review past actions and learn from them.

ü  Align procurement strategies with organizational strategies.

ü  Respect the marketplace. Act on supplier requests; establish and maintain professional communications; provide appropriate de-briefings with the goal of developing a more competitive marketplace.

ü  Know the marketplace. Research the state, skills and competitiveness of the market you seek to employ. Know what the balance of power is between your organization and the marketplace suppliers you seek to tap into. Adjust your strategies as appropriate.

ü  Be ethical. All the laws and trade agreements do not necessarily create ethical practice. Ethical practice is a function of knowledge, respect, transparency and goes well beyond any legal framework in procurement.

Organizations that employ best practices will obtain greater value from their operations and the marketplaces they contract with and serve. Be the strongest link in your supply chain.