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How to add value and contribute to growth through procurement

by Martim Facada, National Outsourcing Association

Procurement departments are becoming more important for adding value and contributing to growth against the rising cost pressures faced by several mature industries.

Supply Management suggests that the way forward “is to ensure they are integrated into the complete procurement process”. Therefore, handing more responsibility to procurement departments can result in many benefits - not only the promotion of tighter and more transparent relationships between companies and suppliers, but also increased savings and efficiencies for the client company.

However, these processes are affected by many issues – which include risk management, product development and quality of supply. However, they also offer many opportunities, such as the promotion of digitalisation, and higher internal and external performance as a consequence of the procurement processes.

In order to add value and contribute to growth, procurement must be involved earlier in the supply process, producing internal and external benefits such as improving the internal communications, flexibility regarding suppliers and innovation, risks mitigation and higher savings.

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