The Psychology of the Procurement Process (Part 3 of 3)

The size of an organization is often the deciding factor when it comes to implementing a procurement process versus a ‘buying on demand’ system of purchasing. When you think about it, ‘winging it’ isn’t really a system at all. We have seen time and time again how having a process can save organizations no matter the size both time and money.

Saving time is often a concept that often gets overlooked, when in reality saving time can actually increase your bottom line by more than most think. Considering most of us do not work, as some lawyers in law firms do, by calculating billable hours we don’t often realize how much time a task actually takes away from the more defined responsibilities of an employee’s job. An example might be a Receptionist who has been asked to find a stand-up freezer with a lock. The request likely has little to do with the role and responsibilities the receptionist was hired for. By adding this request to time lost that the employee has to spend on their actual job duties, an organization is often left behind the 8-ball…not even realizing how it happened.

Saving money is easier to see – when compared to previous costing scenarios.  If an employee can simply order something they think they need without a process to follow then one day they might find themselves with a task chair they can’t use that was originally purchased for a 6”6 foot tall employee, who didn’t last the probationary period, and an incoming 5 foot tall replacement. True story. With no approval process, guidelines or checks and balances in place these types of issues can and do happen. Ordering 12 binders for a new program, when there are 27 unused in another supply closet, can and did happen.

Developing a process doesn’t have to be laborious, it only needs to make sense for your internal structure. It’s not about adding complications-it’s about efficiency. If you’ve read this article to this point then you’ve made a smart choice. Choosing experts in the area is just another smart choice.

Contact the ASSOCIUM GAIN team today and find out the full extent to our membership advantages!