How to Stop the Dysfunction in your Procurement Process
A recent Google survey hosted by AmeriQuest has uncovered an unfortunate truth some manufacturers may not want to admit — their business has a dysfunctional procurement process. When I say dysfunctional I don’t mean everyone argues about purchasing to the point of needing a therapy session – at least I certainly hope that’s not the case. What I mean is that there is a lack communication, visibility and sometimes a plan for procurement altogether.
In theory, one might think that the process of procurement should be easy. All you’re doing is finding a good vender for acquiring raw materials for your products, right? Sure it is, as long as it’s also a reliable resource, the materials fit into your budget, it’s in a good location for cheap, timely transportation to your warehouse, and the materials they send are up to quality standards. Many manufacturing companies don’t have a lot of time to waste on finding and negotiating with potential vendors. This usually leaves them to settle for a “good enough” vendor.
