Top 10 IT Procurement Strategies
10. Innovation Procurement
Innovation procurement is about identifying and procuring new and innovative technologies that can provide organisations with a competitive advantage.
Innovation procurement entails investing in emerging technologies, collaborating with suppliers and partners, and promoting innovation within the organisation.
9. Supply Chain Management
SCM is critical to procurement. With recent geopolitical events such as COVID-19 and the war in Ukraine, it has become glaringly necessary, and those organisations which can execute it proficiently will increase their chances of success to a great extent.
SCM involves managing the flow of goods and services from suppliers to customers effectively.
This includes identifying and managing the risk associated with suppliers, ensuring that products and services are delivered on time, and managing the entire procurement process effectively.
8. Green IT Procurement
The rise of environmental consciousness and ESG/Sustainability considerations has propelled green IT procurement into the spotlight.
Green IT Procurement revolves around making environmentally responsible choices in the procurement of IT products and services.
This includes choosing products and services that are energy efficient, reducing waste, and promoting sustainability.
7. Demand Management
Demand Management strategies are concerned with managing the (now even more so), fluctuating demand for products and services within the organisation.
It includes developing a clear understanding of the organisation's needs, determining the best way to meet these needs, and managing the procurement process effectively. Predictability is key, and is become closely entwined with technological advances. Which beings us neatly to our next strategy...
6. Technology Roadmapping
This strategy involves creating a plan for how technology will be used to support the organisation's goals and objectives over time. The right technology can make or break an organisation and this applies especially to procurement.
Technological Roadmapping requires identifying technology trends and evaluating the potential impact of these trends on the organisation.
5. Cost Optimisation
Cost Optimisation is again, especially under the impact of recent global developments, critical to organisational success. It focuses on reducing costs while ensuring that the procurement process remains efficient and effective.
Cost Optimisation can be achieved by conducting a cost analysis, negotiating with suppliers, and using cost-saving tools - which are becoming evermore sophisticated though AI and ML technologies.
4. Risk Management
Absolutely Key. Risk Management is all about identifying, assessing and mitigating risks - whether these be economic, technological, social or environmental.
Risk Management can include assessing supplier performance, ensuring that contracts are secure, and ensuring that procurement processes are transparent and reliable.
3. Contract Management (CM)
Contracts are now bound up with compliance and ESGs. This strategy involves managing contracts throughout their lifecycle to ensure that they are effective and efficient - and that certain critical criteria are being met.
CM includes negotiating contracts, managing contract performance and ensuring that contracts are properly executed and enforced.
2. Supplier Relationship Management (SRM)
Supplier Relationships can make or break an organisation. This strategy involves developing and maintaining strong and healthy relationships with suppliers to ensure that they deliver high-quality products and services at competitive prices - and forging alliances to tackle common problems.
SRM can be achieved through regular communication and collaboration, as well as through performance monitoring and assessment.
Any organisation that is to be successful needs to have effective SRM as part of their makeup.
1. Strategic Sourcing
Strategic Sourcing takes first place. Becoming evermore important - this strategy involves analysing the organisation's procurement needs and developing a procurement plan that aligns with the organisation's overall goals and objectives. Compliance, ESGs, D&Is and even corporate reputation are all dependent on strategic sourcing.
It means identifying key suppliers, negotiating contracts, and managing the procurement process from start to finish.
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