Reduce Business Risk with Procurement Process

By Liam No comments

For non purchasing Professionals, proper procurement practices and procedure can seem cumbersome and complex. Sometimes they can seem bureaucratic and even obstructive. There’s a job that needs to be done and it is crucial to acquire some crucial tools or components to finish the job. Why go through a complex procurement procedure? The job is much more important than the procedure. Consider two alternative Scenarios: One a complicated and insecure procurement project, another, a rather trivial office project. For the procurement of these Elements for an aircraft engine by way of instance, a comprehensive and carefully documented procedure has to be followed to make certain that engineering best practice and regulatory authority rules are complied with carefully. Short cuts are not an option.

Compare this to another Situation: a job that a small company might run to refurbish their boardroom. No lives are at risk if the boardroom table is slightly too short. There are no laws dictating the color of the soft furnishings. Now, a question: By a Procurement perspective, what is the difference between these two scenarios?

  1. The first scenario requires a formal professional procurement process and the second does not.
  2. They require a procurement procedure. For the first, it is complex for the second it is easy.

The right answer is 2. A Procurement process is almost always a good idea – just adapt it to meet the necessities of the circumstance. If it feels too cumbersome and bureaucratic, it likely is. Adapt it. Just because the risks are small, it does not mean they do not have to be handled – it only means they are easier to handle. Some entrepreneurs are afraid to go through this procurement process. They find it hard to do even before they attempt. Well, nobody can blame them as a few even specify this as a grueling method. But they have no idea that with this particular difficulty come lucrative government or corporation contracts. With associations spending billions of dollars just for acquisition of supplies, business owners should grab this opportunity to maximize their profitability. The results of a mistake in the acquisition of board room are insignificant in comparison to the aircraft situation – but you will still be fired if you spend company money on a desk that is too big because you did not follow the procedure.