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CIO Applications Weekly Brief

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Editor's Pick (1 - 4 of 8)
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Technology Changes to Supply Chains Demand Good Leadership

Technology Changes to Supply Chains Demand Good Leadership
Kevin Glynn, VP and CIO, DSC Logistics

Hidden Costs of Outsourcing and Offshoring for Financial Services Firms: Third-party Financial Data Licensing

Hidden Costs of Outsourcing and Offshoring for Financial Services...
Kristin Gallagher, Director–Global Sourcing & Procurement, Russell Investments

Procurement Transformation - Be Careful What You Wish For

Procurement Transformation - Be Careful What You Wish For
Jeff Stovall, CIO, City of Charlotte, NC

Cloud Computing Benefits Procurement in Two Ways

Cloud Computing Benefits Procurement in Two Ways
Erwin Eimers, CIO, Valent U.S.A. Corporation

Balancing Customization and Business Process Change in an eProcurement Implementation

Balancing Customization and Business Process Change in an...
Benjamin Ho, Deputy Procurement Officer, City of Chicago Department of Procurement Services

High Performing SRM Cultures Require Technology

High Performing SRM Cultures Require Technology
Ryan Nied, Executive Consultant, State of Flux

Partnering with Procurement to Increase Automation

Partnering with Procurement to Increase Automation
Aaron G. Thum, Executive Director, Procurement and Vendor Management, GardaWorld Cash Services

Aligning Procurement Teams with Data

Aligning Procurement Teams with Data
Jeff Stites, CIO, Diamond Foods

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Six Procurement Challenges Hamper Effective Procurement Process

By Joe Phillip, CIO Applications | Monday, January 11, 2021

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Organizations have realized the benefits of having a robust procurement strategy in place. But understanding the strategic process of each stage and finding a way to implement it throughout the functional units of business can be challenging.

Fremont, CA: Procurement leaders are required to handle different responsibilities such as needs identification, vendor management, and payment processing. And this task of identifying and managing the difficulties can be beneficial as procurement impacts an organization’s bottom line.

Here are six business challenges in procurement:

Inaccurate data

top procurement tech solution companies

Organizations need precise and reliable data to make informed procurement decisions. Purchases based on incorrect procurement data can result in inventory shortages, excess inventory, and other challenges that directly influence an organization’s bottom line.

Dark purchasing

Dark purchasing are those purchases made beyond the defined procurement process. This uncontrolled spending can be expensive for businesses. Items procured that cannot be justified using capital outlay, or material inventory can lead to loss of revenue and control, making it more challenging for organizations to manage.

Check Out: Top Procurement Solution Companies

Supplier-related issues

Another issue in procurement is supplier management. From identifying the appropriate supplier to monitoring vendor performance and assure a consistent supply of quality products, the entire process is complicated.

Risk mitigation

Supply risks such as market risks, potential frauds, costs, quality, and delivery risks are some common types of risks. Compliance risk like policy adherence, anti-corruption, among others, also adds to the difficulty in procurement.

Strategic procurement

Organizations have realized the advantages of having a robust procurement strategy in place. But understanding the strategic process of each stage and finding a way to implement it throughout the functional units of business can be challenging.

Long process cycle

Products and services bought at the last minute result in longer lead times and procurement cycles than expected.

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