{"id":4248,"date":"2020-08-21T19:45:25","date_gmt":"2020-08-21T14:15:25","guid":{"rendered":"https:\/\/stagingwww.zycus.com\/5-ways-world-class-procurement-organizations-get-quick-results"},"modified":"2023-10-27T04:07:31","modified_gmt":"2023-10-27T04:07:31","slug":"5-ways-world-class-procurement-organizations-get-quick-results","status":"publish","type":"post","link":"https:\/\/dev.zycus.com\/freshz\/blog\/procurement-technology\/5-ways-world-class-procurement-organizations-get-quick-results","title":{"rendered":"5 Ways World-Class Procurement Organizations Get Quick Results"},"content":{"rendered":"

Leading companies have realized that the procurement function directly affects their bottom line. Hence, world-class organizations follow some procurement best practices in order to achieve better performance.<\/p>\n

In this article, let us find out what leading procurement teams do differently in areas like working capital, spending visibility, supplier management, and analytics.<\/p>\n

5 best procurement practices used by World Class organizations:<\/h2>\n
Procurement best practices<\/span><\/strong><\/figcaption><\/figure>\n
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1. Apply Best Practices knowledge<\/strong><\/p>\n

World-class procurement departments have already moved from being a tactical purchasing function.<\/p>\n<\/div>\n<\/div>\n

Hence, they apply best practices to the purchasing cycle’s various activities and use analytics and strategy to align the procurement<\/a> function with the business goals.<\/p>\n

2. Greater spend visibility<\/strong><\/p>\n

In its\u00a0Realizing the Power of Procurement Reports<\/a>, A. T. Kearney finds that leaders have visibility into 80 % of their direct and indirect spending compared to 50 % of non-leaders.<\/p>\n

The report also states the importance of advanced analytics tools to understand the various cost drivers. Furthermore, analytics should be applied not just to spend management but also other areas like forecasting risks for measuring supplier performance.<\/p>\n

3. Looking for value<\/strong><\/p>\n

Supplier management is an ignored but high potential area for cost savings and risk management. Therefore, procurement departments need to unlock this value using strategic long term initiatives that focus on building the supplier relationship and building more resilient supply chains.<\/p>\n

4. Select the right KPIs<\/strong><\/p>\n

Please note that KPIs must not be used in isolation, but they should be used as benchmarks against industry performance. Therefore, the suggested KPIs include:<\/p>\n