How To Create Procurement Reports, Part I
PurchTips edition #302
Are These Items On Your Procurement Reports?
How does a procurement leader know what his or her procurement team is working on? He or she can stand over the shoulder of each and every team member every day. Or, he or she can use a more practical tool: the procurement report.
That's a simple enough concept. But a common question is: what should be on a procurement report?
In this and the next edition of PurchTips, I'll share eight items to consider including on your procurement report. That's not to say that these are the only items to include or that each of the items should definitely be included. You should use these as a starting point and add to and/or delete from this list to suit your procurement department's culture.
OK. Here are the first four items commonly found on procurement reports...
- Cost Control Performance. In this section of the report, you should summarize fiscal-year-to-date cost savings, cost savings achieved since the last meeting, cost increases incurred since the last meeting, cost savings opportunities being pursued, and cost increase threats observed.
- Sourcing Projects. In this section, you should provide updates of sourcing projects. You may want to consider separating these projects into phases, such as pre-solicitation, awaiting proposals, etc.
- Supply Risks. In this section, you should summarize supply risks that you have become aware of. More importantly, you should specify what you are doing to mitigate those risks.
- Internal Customer Collaborations. Developing relationships with internal customers in the organization is as important a procurement initiative today as it ever was. In this section, you should share the details of upcoming and recently completed collaborations with internal customers.
Items 5-8 will be covered in the next PurchTips. A procurement report template is available to Premium Members of the NLPA in the NLPA Library.
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Copyright 2014. This article is the property of Next Level Purchasing and may not be copied or republished in any form without the express written consent of Next Level Purchasing.
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By Charles Dominick, SPSM, SPSM2, SPSM3
Other Editions of PurchTips:
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