Effective Procurement processes are a key to raising productivity. But, there are a variety of sources of possible waste that may significantly reduce productivity by slowing down procedures or requiring work to be re-done. When this occurs it is critical that you fix it before it begins to have an effect on the service you provide to your internal clients. This is how to do it.
- Detect and identify the waste. Till you have done this you cannot take action to get rid of the waste. Begin by measuring the vital features of your procurement procedures. By way of instance, speed is often crucial for your internal clients so time just how long on average it requires a client need to go through the procedure. Track this amount over time and you will spot when the method begins to slow down.
- Trace the waste back to its own source. Now you have identified the waste you will need to know why it occurs. So, by way of instance, where a procedure is getting slower is it because of someone not knowing how to perform the action or is it because of too much work for a person? Ask questions and observe actions to locate the actual reasons.
- Take corrective action. If The issue is one of misunderstanding the undertaking, re-train those involved or have them work with a skilled employee who can train, mentor and coach them. If it is a capacity issue then priorities the workload or add new capability.
- Incentivize people to Identify and remove waste themselves. Financial incentives are not always needed to arouse the perfect behaviors. Pride in their work or public recognition for a job well done can often be better at inspiring people.
- Measure the results. Continue to gauge the procurement process to make certain that the waste was eliminated and the procedure returns to full productivity.
- Publicize the results. Make sure that others in your organization know about your productivity improvement efforts and how it helps them to perform their jobs better. Use newsletters and case studies as fast publicity material.
- Extend the attempt to your Strategic and critical suppliers. Leverage the learning you have achieved in making your processes more effective by taking that learning to your key providers and assisting them to implement similar attempts. The time involved will be paid back several times in better support to your organization.