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Productivity

Posted 2/13/2021

According to a recent Globe and Mail article, Canada’s productivity is falling relative to other nations. The article suggests creation of a federal productivity commission modeled after similar in Australia that has successfully raised productivity in that country

All well and good.

Procurement is well positioned to contribute to productivity gains today. As the organizational resource that connects internal operations with external suppliers, we can create big efficiencies with minor changes to our processes. In doing so, procurement will position itself ahead of the curve of operational review. Let us consider how to create internal and external efficiencies:

Contract Management: Including contract management processes in your supply requests and eventual contract demonstrates commitment to good supplier relations. Processes addressed could include a pro-forma service level agreement to be finalized with the contracted party. Start up and frequency of operational meetings can also be stated. By including contract management in the RFx, suppliers and your internal clients are put on notice right at the beginning of any eventual contract.

Procurement Processes: Are all your internal clients on the same page as Procurement? Do you have a written guide that is the resource for all involved in procurement? The consequences of ad hoc buying can be expensive, and time consuming which affects productivity.

Has your procurement policy and process been reviewed for operational efficiencies recently? What changes could be made to increase efficiencies? What is necessary and what is not? Be frank and ask the hard questions of yourself and your colleagues.

Look after yourself: Plan your professional development to create a more productive and valuable you – to you and your organization.

Big government may or may not work to improve productivity, however we on the front line of supply can make individual improvements that together will improve our nation’s productivity