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Procurement policies and procedures

Get to grips with the objectives of a procurement policy

Objectives of a procurement policy

A procurement policy commits an organisation and every individual involved to meet an objective. There are several objectives which are included in policies. Legality and accountability are non-negotiable and should not be broken under any circumstances.

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Benefits of a procurement policy

Procurement policies have many benefits and it’s not just limited to helping procurement stick to certain objectives and obligations.

  • Cost savings:
    Procurement policies help organisations lower costs by procuring services and contracts at the best value. It helps to gain better visibility into the organisations budget.
  • Efficiency:
    A good procurement policy ensures products are always of the highest quality.
  • Innovation:
    An effective procurement process will help procurement look for new innovative products to gain a competitive edge.
 

How to set up a procurement policy

There are several best practices to consider when setting up your policy. Procurement policies can get complex but look at some of our hints and tips to get you started.

  • Use clear, simple language so employees can understand the policy
  • Identify everyone’s roles and responsibilities
  • Consider assigning someone to maintain and refresh procurement policies or to be a ‘go to’ person if there are any problems
  • Incorporate some checklists and forms so staff can visually understand the policy
 

What is procurement?

Procurement involves the buying of goods and services that enables an organisation to operate their supply chains, in a profitable and ethical manner. Explore deeper into how procurement is defined, the role it plays and a how a career in procurement can benefit you.

Procurement key themes

Procurement process New product development Big data in procurement
Socially responsible procurement How to write a contract Procurement KPIs

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Strategic procurement

There are many benefits to strategic procurement and when successfully implemented it can provide cost savings, mitigate supply risks, and improve your relationships with strategic suppliers. This document will provide you with an understanding of strategic procurement and will briefly explore application, advantages/disadvantages, and some hints & tips.

High performance procurement guide

Procurement is undergoing significant transformation, primarily because of a shift in the nature of the business environments in which buying and selling goes on. The mass production of the past brought stable organisational routines and economies of scale, as well as predictable customers.

Procurement policies and procedures guide

This procurement policy applies to and binds all directors, managers and employees of the organisation in any situation where they are involved in a procurement process, whether as requisitioners or specifiers, purchasers or negotiators, or those who validate or authorise payment.

Procurement policies and procedures guide part 2

This document follows on from Procurement Policy and Procedures Part 1. Where Part 1 explored policies, Part 2 will explore the processes that are underpinned by the procedures.

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