Making Procurement Performance Count – Part 4: Streamlining the Procurement Process

Making Procurement Performance Count – Part 3: Streamlining the Procurement Process
March 4, 2013
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March 8, 2013
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In the previous blog we discussed the first step, which involves getting the configuration correct i.e. defining the structure and boundary of the project. In this post we will discuss step 2 and step 3 of the procurement performance tracking process.

The second step in the process is – EXECUTION

After the process outline has been defined, the next step is to execute it. This step can be further broken down into the following;

  • Manage Savings:

Like multiple stages in a project, the savings cycle goes through multiple stages. At every stage there may be a conflict between forecasted savings v/s actual savings.

The savings need to be calculated as per the agreed savings formula and its impact mapped on the relevant financial statement. In case of any changes in the formula or mapping to the financial statement, at any stage, the user should have the option, depending upon the access rights to add comments or add an attachment or revise the data.

  • Approve Savings:

As discussed in the previous blog, a well-defined approval workflow ensures the data passes through the correct channel and is relevant. Likewise, savings achieved also follows the same path for final approval.

The third step in the process is – REPORT SAVINGS

This last step involves reporting the final approved savings. Reports help in analyzing the reasons for project success or failure. An ideal reportingsystem should be customizable and provide an in-depth analysis of where and how savings were generated. Dashboards with ability to track target v/s forecasted v/s actual savings provides the necessary visibility to the top management for actionable decision making.

For further reading, click on the download button to access the whitepaper – “Making Procurement Performance Count”

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