Procurement Pitfalls to Avoid in Your Own Organization: Part 1

By Adam Kuritzky, Vice President, Sales - Private Sector, Proactis

Below are four of the common procurement mistakes that plague many organizations.

1. Misaligned KPIs: How is procurement measured for success? Are those metrics aligned with the overall organizational goals as well as the goals of each business unit? How do they differ and why?

2. Antiquated or Overly Rigid Processes: As your organization evolves, if checks and balances to making a purchase become overly cumbersome, two things will happen:
  • Animosity towards procurement.
  • Business units’ will leverage and take advantage of creative approaches to bypass procurement’s processes.
3. Poor Communication: Many business units will disengage from procurement because of the historical perception that conversations with procurement equal delays in decision-making, time spent providing additional information and “teaching” procurement about the business unit’s needs.

4. Lack of Domain Knowledge: If your business is diversified and/or highly specialized, many procurement specialists are unfairly put in the position of having to manage the purchasing process of products or services where they lack the domain knowledge to help the process.

Stay tuned for Part 2 on steps you can take to avoid and/or correct the above Pitfalls.

View our dedicated page to achieve your capacity, talent and process goals through Procurement transformation