How To Increase Procurement's Credibility - NLPA

 
 
 

How To Increase Procurement's Credibility

PurchTips edition #309

 

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What Do Stakeholders Think Of Your Department?

Some procurement departments face the challenge of having little credibility with their stakeholders. Here are four ways that leading procurement departments increase their credibility with stakeholders.

  1. Embed a procurement employee in the stakeholder's department. A frustration that stakeholders have with Procurement is that they feel that Procurement doesn't understand what they do. Procurement is usually off in some office space far from where the stakeholder works. By having a procurement employee physically located in the stakeholder's department, Procurement will have a better understanding of the quality, delivery, service, and other supplier performance requirements important to the stakeholder.
  2. Hire someone with your stakeholder's background. Stakeholders worry when decisions about highly technical decisions are being made by people without highly technical backgrounds. For highly technical categories where stakeholder collaboration is key, leading procurement departments often hire individuals with the stakeholder's background. For example, if the stakeholders are engineers, the procurement department will hire engineers. If they are information technology professionals, the procurement department will hire information technology professionals. They make these hires knowing that procurement techniques can be taught to smart people.
  3. Have a communications manager. Procurement professionals generally communicate well. But most do not have the level of skill required to be an influential and inspirational public relations executive. Yet, that level of skill is required for some procurement organizations to attain the level of credibility to which they aspire. Some leading procurement departments have an employee with top-notch public relations skills focused exclusively on communicating to stakeholders and staying out of the "trenches" of procurement itself.

Learn the fourth way of increasing Procurement's credibility from my blog at http://tinyurl.com/lu8aluz.

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