Every day, the purchasing area gains prominence in companies, due to its strategic importance in business growth. However, some errors in purchasing management can hinder the speed of your evolution.
There are a few Myths that still surround purchasing professionals and that hinder the department's results, such as believing that the digitalization of processes could replace the buyer's role in companies.
In this ME blog post, we have selected the main mistakes in purchasing management that prevent teams from becoming strategic business protagonists.
Enjoy reading!
1. Not having purchasing planning aligned with your company’s objectives
Planning is one of the most important steps for the success of any business, especially in uncertain scenarios. In an increasingly competitive market, a company that does not plan can suffer major negative and even catastrophic consequences.
In the purchasing area, planning is the key to increasing the chances of achieving the best acquisitions, with competitive prices and better business partners.
But one of the errors in purchasing management is to focus only on the economy and not direct efforts towards other important aspects that contribute to the company's growth, such as new technologies and ESG issues.
Defining goals aligned with business objectives is essential for the purchasing area to increase its efficiency in the medium and long term.
2. Not optimizing day-to-day purchasing operational processes
In the not-so-distant past, the purchasing department was known only as internal customer support. With the crises we have already experienced and technological transformations, this scenario has changed: today, enhancing business between companies is important for companies to grow in a sustainable and scalable way.
And to keep up with market developments, operational purchasing processes can no longer be the focus of buyers. Professionals need to be freed up for strategic activities that are relevant to the business.
Purchasing automation, through digital solutions, not only frees up the buyer's time for strategic activities, but also provides important data for sector planning, reduces lead time, increases transparency in transactions, among other achievements.
In this exclusive ME material, learn more details about purchasing automation, benefits and the use of purchasing robots – RPA (Robotic Process Automation). Download here!
3. Not considering the negotiation stage as one of the most important
One of the main errors in purchasing management is the fact of not giving due attention to the negotiation stage. This usually happens when there is a lack of planning and last-minute acquisitions, damaging the bargaining power of buyers.
To generate savings, negotiating well is essential to achieve good results.. In addition to the search for savings, other topics are also relevant in negotiations, such as planning, communication and collaboration.
Having an empathetic perspective when negotiating and considering benefits for both – buyers and suppliers – is one of the ways to invest in the relationship with your business partners and enhance innovations.
4. Not monitoring purchasing area KPIs
In purchasing, R$1 in savings means R$1 in profit for companies. Therefore, making decisions based on assumptions is one of the errors in purchasing management, and the consequences of wrong choices can be irreversible.
To identify possible problems and know if the area is moving towards the proposed objectives, it is essential to work with KPIs (key performance indicators) in your purchasing strategy.
By monitoring indicators, purchasing professionals can make faster and more intelligent decisions, based on data and information analysis.
The most common KPIs are: saving (savings generated by the purchase); delivery level, price evolution, productivity, customer satisfaction and supply costs.
5. Not investing in the development of behavioral skills
In the purchasing area, technical skills and knowledge of technologies for managing day-to-day activities are not enough for the department to be successful. For this reason, the development of behavioral skills have been increasingly relevant.
“People” are essential for processes and technology to work well. Unlike in the past, purchasing professionals need to be aware of the skills that contribute to their best performance in negotiations, in relationships with other areas and with partners.
Knowing how to relate well with suppliers, seeking partnerships with other areas, cooperating with team colleagues, presenting ideas clearly and objectively, being analytical and having good communication are some of the essential skills for a successful career in purchasing.
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