How to Eliminate the Problems of Multiple Departments Involved in Procurement

First of all, there are many procurement business processes, including procurement planning, supplier selection, bidding, contract signing, production tracking and delivery, product acceptance, contract payment and other segments. Each step of the process is approved by the corresponding department, which makes the approval procedure cumbersome. Secondly, each department needs to spend a lot of time on approval in order to pursue its own best interests and the so-called lean supply, such as the audit department trying to negotiate with suppliers in order to lower the purchase price regardless of the cost of time, the finance department trying to get more capital flow and reduce the loss of interest on capital by extending the payment time, and so on. The finance department, in order to get more money flow and reduce the loss of interest on money, extends the payment time as much as possible. Procurement approval process is too long, too long, affecting the procurement process, may lose the good procurement time, delayed delivery time, resulting in production stoppages and the market out of stock and other serious consequences. As you can see, the disadvantages of multi-departmental purchasing under the traditional procurement model have had a direct negative impact on the effectiveness of procurement. With the arrival of the supply chain procurement model, the core idea of procurement management is to coordinate the subsystems of each procurement link, and ultimately satisfy the lean demand or flexible demand of the enterprise through the optimal allocation of resources. So in the new supply chain procurement mode how to eliminate the shortcomings of multiple departments in the procurement to achieve the best benefits of procurement it

First, the development of a reasonable and effective procurement assessment system. In the case of limited purchasing resources, the effectiveness of the various aspects of procurement is the result of this and that, such as high quality and high prices, low inventory and high logistics and distribution costs, the pursuit of economies of scale in procurement will inevitably lead to high inventory costs, and so on. If the corresponding approval department over-emphasizes the performance of the department, it will certainly affect the overall procurement efficiency. Therefore, enterprises should be from a global perspective, the development of the overall assessment mechanism, the focus of the award on the team rather than just look at the performance of individual departments to eliminate the short-sighted behavior of individual departments. This is conducive to promote the various departments in the procurement approval from the overall perspective, a comprehensive analysis of the various procurement aspects of the relationship between the interests of the search for the best balance of interests, the pursuit of optimal overall procurement efficiency.

Second, optimize the procurement structure, simplify the procurement approval process. First of all, in view of the overlapping, intersection and even misalignment of jurisdiction caused by multi-departmental procurement, the responsibilities and jurisdiction of each department should be clarified in accordance with the functional characteristics of the department and the business requirements of each procurement process, so as to avoid the emergence of multi-head management phenomenon. Secondly, streamline or reorganize some of the redundant approval process, appropriate reduction of procurement department level hierarchy, such as in the payment process, some enterprises have the Audit Department first approved by the Ministry of Finance to the Finance Department of more than one person to review the payment, the approval process is too repetitive, through the streamlining of the Ministry of Finance can be directly based on the contract and acceptance of the results of a separate payment advice and arrangements for payment. In addition, training and recruiting compound professional purchasing talents to take up the work of multiple purchasing segments, so as to reduce some of the approving departments and achieve the purpose of simplifying the purchasing approval process. In addition, establishing an internal coordination mechanism and negotiating to deal with all kinds of problems in purchasing. The internal coordination mechanism is a lubricant for the convergence of the work of various departments, which can promote the coherence of the work of various departments and ensure the smooth implementation of procurement work. First of all, regardless of the number of procurement departments, they are part of the organization's procurement team, on behalf of the enterprise directly to the supplier to purchase the required items, through the internal coordination mechanism, is conducive to promoting the organization's procurement departments unity, the formation of a strong purchasing negotiating power, for the enterprise to strive for the greatest benefit.

Secondly, in procurement, it is inevitable to encounter such problems as major product quality issues, product supply shortages, partner defaults or even termination of the contract, force majeure factors affecting the performance of the contract, and so on, these problems can not be resolved within the scope of responsibility of a particular department, it is necessary to deal with them through the internal coordination mechanism, the group negotiation. In addition, it is necessary to establish unified procurement policies, procurement procedures, technical specifications, and other operational rules as a means of coordination to facilitate the smooth operation of the various departments involved in procurement. With the deepening of the procurement business process and the refinement of the division of labor in procurement, the multi-departmental procurement organization has been widely used by many enterprises. Therefore, enterprises should be in the new supply chain management ideas, the development of a reasonable procurement assessment system, optimize the procurement process and smooth internal coordination mechanism to eliminate the adverse effects of multi-departmental procurement framework to ensure the successful completion of the procurement task.