Survey: Compliance & Risk Mitigation Top Concerns for Procurement
PROACTIS, a global Spend Control and eProcurement solution provider, today released new survey results compiled in the first of a series of invite-only roundtable events with senior procurement executives in the Charity and Not-for-Profit (NfP) sector that clearly show that compliance and risk mitigation are the greatest concerns despite ongoing pressure to reduce costs.
The roundtable discussed what Spend Control means to NfP organisations today, the role of Procurement in facilitating better performance and what kind of investments need to be made by leadership, and the risks involved in not facing emerging challenges in the sector.
In response to the question "what is your greatest concern?" 56% of panel members selected compliance and 22% risk mitigation ahead of cashable savings, efficiency savings, business continuity and regulations.
Compliance management is the process of ensuring all purchases are in line with corporate policies, established budgets and negotiated supplier agreements in order to avoid costly off-contract or "maverick" purchases. By taking a systematic approach an organisation can realise its objectives and effectively manage clear responsibilities, procedures and controls for ensuring performance and spend compliance.
Risk management is just as critical to an organisations financial health and performance as efforts to produce cost savings. The only way to minimise supplier risk is to maintain a high level of visibility of the information (certifications, regulatory compliances, quality and safety assurance processes etc.) that act as key indicators of each suppliers ability to perform, and the likelihood of a problem.
"With the proper support tools, effective compliance and supplier risk management is, in fact, very practical," said Simon Dadswell, Marketing Director at PROACTIS. "And the good news is that the tools needed are the same tools that help you to find and realise cost savings opportunities, and that help you reduce operational costs in Procurement and Accounts Payable - purchase-to-pay, electronic sourcing, portal-based supplier communications, and centralised contract management."