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People buy outside the process because the process is slower. First step: make the approved route the fastest route.
HomeEight procurement challenges, and what actually helps
Guide
Eight procurement challenges, and what actually helps
Most procurement problems come from a small set of causes: unclear rules, messy data, slow approvals and too little time. Here are eight that appear in companies of every size, with practical first steps for each.
By Procurement VMS Editorial TeamLast updated
The common thread
Problems that look different but share a cause
A buyer chasing an approval, a finance lead hunting for a contract and a requester buying from a consumer site look like three separate issues. Look closer and they share a cause. The easy way to buy is not the right way to buy. Fix that, and many problems shrink together.
The challenges
Eight problems and a first step for each
Slow approvals
Requests wait for people who are busy or away. First step: set limits by value and name a delegate for every approver.
Messy supplier data
The same supplier appears under several names with different bank details. First step: clean the top suppliers by spend and lock bank detail changes.
No contract visibility
Nobody knows when notice periods fall. First step: put every contract end and notice date in one calendar.
Low visibility of spend
Reports arrive weeks late and in different formats. First step: choose one source of truth and a monthly review.
Supplier risk
A supplier fails and you learn from the news. First step: list critical and sole source suppliers and check them each quarter.
Skills and time
The team is busy with orders and has no time for strategy. First step: automate repeat tasks, then use the time on top categories.
Weak adoption of tools
New software launches and staff keep using email. First step: involve requesters in the design and measure use, not only savings.
A sequence that works
Where to begin
If you can only fix three things this quarter, fix the approval route, the supplier list and the contract calendar. These three are cheap to start, give quick evidence of progress and make every later improvement easier.
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Questions
Frequently asked questions
What is the biggest procurement challenge today?
It depends on the company. Visibility of spend and supplier risk come up most often in our conversations with buyers.
Do I need new software to fix these?
Not always. Rules and ownership come first. Software helps enforce them at scale.