The performance of procurement is determined by the quality of their stakeholder relationships and the ability to manage the ensuing dependencies. Procurement cannot determine strategies and policies in isolation of others within the organisations.
To adopt an isolationism strategy, will result in a lack of credibility and a determination by others to undermine the procurement process. The quality of specifications and resultant Key Performance Indicators will enhance the ability of procurement to produce high quality tenders, conduct high quality negotiations and put in place appropriate contracts. The ideal scenario is for procurement to engage in a process when a purchase or project is being contemplated.
This early engagement is vital in presenting a blended organisational approach to the supply market and in making sure that procurement is not undermined by untimely and unwise release of information. Procurement must take the initiative in communicating their dependencies on others if procurement is to manage all risks for which they are accountable. This data set of Procurisk has been designed to explore the dependencies and the quality of managing the dependencies that procurement has on other stakeholders.
There are many business benefits that will accrue from applying this data set. These include higher quality specifications, KPIs that hold the supplier accountable for relevant performance and lower life cycle costs.