Procurement Business Process Consulting

Procurement is the most basic business process that covers creating a purchase order and receiving goods or services against it. However, most companies have more complex process variations that involve approvals, contracts, sourcing, requisitions and even supplier portals. These variations require more thought in order to develop an optimal business process. Procurement along with a supplier's invoice payment creates the overall procure-to-pay process at macro level.

DAZ consultants take a systemic approach to build business processes, optimizing the use of people, process and technology for the most effective process flow in procurement.

Procurement can be Value Add

Purchasing is frequently viewed within an organization as a spending function. Good procurement processes target changing this perception to a value add function for controlling costs. Appropriate sourcing and supplier qualification processes can lead to improvement in cost and quality of procured material and services. Supplier collaboration and portals can be leveraged in further streamlining procurement processes. Contracts or agreements can be incorporated to automate the overall procurement cycle. Communication with suppliers can be streamlined with automated transmissions of orders. Sufficient internal approval processes also need to be put in place to help control costs so that managment is not surprised by expenses. Receiving can be centralized or decentralized depending on the type of procurement. Rule-based inspection of material can improve the quality with reduced impact on the procurement cycle. Invoice or voucher matching processes need to be defined to ensure payments follow agreed terms. Additionally, the use of tools can streamline the overall procure-to-pay process. For instance, evaluated receipt settlement automatically creates vouchers from receipts, as per the agreed terms.

Key Process Influencers

  • Approval Matrices
  • Sourcing & Approved Suppliers
  • Goods vs. Services
  • Other Business Areas such as Projects or Assets
  • Quality Inspection

DAZ can provide a unique combination of proven project approaches, industry extensions, and related services. To discuss what we can do for your business, contact the DAZ Sales Team.