#3 – Learn From What Was Done
The procurement function provides the buying organization with information about its marketplace and the state of its supply chain. The information gained from procurement activity and the relationships thus formed is often strategic and is considered by progressive organizations in their strategic planning.
Procurement is often called upon to break new organizational ground. Examples include the procurement of new facilities including infrastructures and services that support business processes. In these instances, procurement is at the frontline of organizational change the success of which can be a valuable lesson for the organization. There is much that can be learned from our suppliers. A carefully crafted supply contract will provide for this opportunity.
Learning is just as important at the operational level. We have all encountered situations where experiential learning took place. For example, are there many or few suppliers for a particular good or service? What is the providence of goods? What might be the best way to approach a similar procurement in the future? The professional will record this in an appropriate manner so that the lessons learned will in future be available to self and/or colleagues.
Systematic record keeping is required for institutional learning. One person’s experience does not automatically get understood by others. A standardized post procurement record, particularly for new and innovative procurements is a valuable resource to the institution. Avoidance of duplication of effort, corrections of errors and operational planning are all cost reducing benefits that flow from good record keeping.
Contract management activities are also opportunities to learn valuable lessons. Your suppliers likely record everything bought by your organization. Do you have access to this information? Negotiating contract changes are lessons in themselves. Understanding the professional relationships formed with contract managers is valuable information.
Every activity is an opportunity to learn. Integrating the learning with organizational practice is essential. Thanks for reading, your comments are welcomed.
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Other Posts in the series: How to Add Value to Your Procurements
• Be Proactive
• Analyze what is required – bring clarity to the specification
• Understand the supply chain
• Align procurement strategies with corporate strategies
• Apply the highest standard of ethics
• Use the right tool for the job
• Plan contract management before there is a contract
• Learn from what was done
• Mitigate procurement risks
• Utilize the skills of supply management professionals
Over the coming year, Rusty Joerin, guest blogger, will expand on the above. Your comments are welcomed.
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