Where Procurement Goal-Setting Breaks Down
Are There Secret Plans That Will Affect Your Procurement Goals?
PurchTips Edition #388
By Charles Dominick, SPSM, SPSM2, SPSM3
The page for October has been ripped from the calendar. It is now November. If you’re like many business professionals in general – and procurement professionals in particular – much of your time this month will likely be spent on setting goals for the coming year.
It is a primary rule of strategic procurement to align procurement goals with the goals of the overall organization. But, even if you’ve done that for this year and all years prior, that doesn’t mean that your procurement goal-setting won’t break down in the coming year.
You see, even if your organization makes its vision, mission and goals ubiquitously visible throughout its operations, your CEO usually has plenty of important plans that you don’t know about. If these covert plans aren’t factored into your goal-setting, the procurement goals that you set may end up being unachievable, irrelevant, or obsolete before year end.
Therefore, I encourage you – or an appropriate executive from your procurement department – to sit down with your CEO and learn about the plans that aren’t public knowledge. Here are nine example questions to guide that discussion:
- Which products or services that our organization sells or uses do you see increasing or decreasing in demand?
- By how much will demand increase or decrease for those products or services?
- What activities from this year are going to be discontinued in the coming year?
- What capital assets will be divested in the coming year?
- What new products or services is our organization going to begin developing or selling in the coming year?
- What new projects or activities will begin in the coming year?
- What new capital assets will be acquired in the coming year?
- What operations are you targeting for improved efficiency and cost-effectiveness in the coming year?
- What operations are you targeting for improved quality, service or speed?
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