SUMMERtime; STRATEGYtime

It’s summer already and the perfect opportunity to use these quieter months to focus on actions to improve your bottom line.

Take this time to work cross-functionally with finance and key stakeholders in preparation for the run up to Christmas. With fundraising events and many organisations reaching year end, October through to December are traditionally busy times. Getting ahead of the game, looking at existing procurement processes and activities will help identify both quick tactical wins and longer term strategic opportunities.

#FundFinding: the process of identifying and releasing funds through SMARTprocurement to fund specific projects. 

Where should you begin? Make your procurement strategy a priority

If you don’t have a procurement strategy, start building one today. If you do have a strategy, make it a priority, review it and ensure it's fit for purpose. A straightforward, well implemented strategy will deliver cost savings, deliver efficiencies and manage supply chain risk.

Build it

  1. Ensure your procurement strategy aligns with your organisation’s key objectives
  2. Involve key stakeholders in brainstorming sessions on how you could buy smarter
  3. Data is key - it’s important that spend information is extracted from finance systems and analysed. This will provide the understanding and insights necessary to interpret your organisation's buying behaviour and plan your procurement approach
  4. Locate existing contracts to build your road-map. Identify those coming up for renewal, those which may pose a risk i.e. not GDPR compliant and those which may deliver the biggest value or cost savings 

Important: If contracts for key suppliers do not exist, put this on your Risk Register and action immediately

This is a good time to identify a procurement owner within your organisation. This doesn't need to be a dedicated role, however, having someone with procurement responsibility to ensure the strategy is monitored and implemented will keep things on track. When more complex, high risk or niche needs arise consider using external resource. This will avoid the cost of recruiting, internal overheads and can help focus to meet timescales.

Implement it

  1. Share with your stakeholders:
    • How the strategy meets with compliance and governance, both internal and regulatory
    • How suppliers relationships are managed and developed
    • How performance is monitored and continually improved
    • How the organisation and beneficiaries will benefit
  2. Once there is agreement with stakeholders, the strategy should be made widely available and accessible to everyone through internal communications. The more people who have an understanding the easier it will be to implement and take them on the journey.

Important: Demonstrate easy "quick win" savings via your new structured approach and share through your internal communications

  1. Publish policies, processes, templates with guidance and advise where to go to for support. Make it simple for everyone to get what they want quickly and easily.

Train it

Train everyone, including non-procurement volunteers and stakeholders. Ensure there is a training process for existing and new volunteers/stakeholders as part of their on-boarding process. Show them the value procurement can bring, how it can help avoid reputational risk and its importance to the financial health of your organisation.

“The only thing worse than training employees and losing them, is not training them and keeping them!” Henry Ford

Clarity + Control = Confidence

Having a Procurement Strategy is the first step. The longer-term goal should be to gain Clarity over spend and demonstrate Control of your buying behaviour. These together will give your help your supporters Confidence that funds are spent in the right way delivering your mission.

We hope these points have given you ‘food for thought’. If you are looking for cost effective procurement support, then contact us today.

Kavita Cooper

Kavita Cooper

Director

 

Through Novo-K I am able to bring together my experience and knowledge to support Charities, Social Enterprises and SMBs. My aim is to help organisations gain Clarity, demonstrate Control and give Confidence that money is spent in the right way

Novo-K

Every relationship begins somewhere so please get in touch!

Centaur House, Ancells Business Park, Ancells Rd, Fleet GU51 2UJ

0800 002 9025

Contact us

Every relationship begins somewhere, so please get in touch!