PROCUREMENT STRATEGY
HOW TO ACHIEVE LEAN PROCUREMENT
Minimising waste and promoting efficiency are key targets for any sourcing operation , so how do you achieve the goal of lean procurement ?
WRITTEN BY : NEIL PERRY
The term ‘ lean ’ was originally used within the manufacturing industry , but has since gone on to represent principles of streamlining and improving the entire procurement chain from initial sourcing to final delivery .
The key factors for success Krish Vengat N is Vice President , Consulting at GEP ’ s automotive and industrial manufacturing practices , and advises leading companies on procurement strategy and performance transformation . He believes there are key factors that have to be in place for a successful lean procurement strategy , that are tied to efficiency enhancement , cost reduction and operations streamlining .
“ First and foremost , the strategy should have clearly defined and measurable objectives aligned with overall business goals ,” says Vengat . “ Encouraging crossfunctional coll1211aboration ensures a comprehensive approach that spans the entire supply chain and procurement processes .”
Alongside this , he says the integration of technology is critical in creating “ a smart and robust system ”, including e-procurement tools , supplier portals , to allow for valuable improvements in efficiency and automation that can ’ t always be achieved through more manual processes . When this is put in place , Vengat says it can work alongside a culture of continuous improvement , through standardised processes , optimising inventory , and having robust risk management strategies to minimise potential disruptions .
40 Dectember 2023