How do you recognize a useless purchasing report?
The recipient has to leaf through a multi-page document full of incomprehensible and, from his point of view, useless information.
How do you recognize a useless purchasing report?
๐ The recipient has to leaf through a multi-page document full of incomprehensible and, from his point of view, useless information.
๐ Another major warning sign is the overabundance of text and numbers, as well as the absence of a clear and visual summary that shows the current situation and calls for concrete action.
๐ It does not summarise the key tasks of purchasing.
๐ If the report does not include key tasks including strategic aspects, leadership and internal customer needs, it is a signal that it is not targeting what is really important.
๐ The recipient does nothing with the information in the report. If the addressee does not take any specific action after receiving the report, the question is why he/she is buying the report in the first place and why he/she is doing it.
๐ At an operational level, situational purchasing reports are useful, summarising important information in a simple and clear way, immediately identifying problems and calling for specific action. These reports should be automated and available to the buyer whenever they log into the system.
๐ For procurement managers, it is crucial to focus on process reports that assess process efficiency and achievement of expected performance levels.
๐ A thorough process analysis can provide valuable insights and identify areas in need of improvement. These reports should be generated on a regular monthly basis.
๐ Procurement directors should then create strategic reports that clearly and understandably show procurement's performance in implementing key strategic initiatives.
๐ These reports are difficult to automate and need to be supplemented with analysis and action plans, which is why Purchasing creates them quarterly to semi-annually.
๐ Improving the quality and automation of purchasing reports can deliver rapid and tangible improvements in purchasing performance in day-to-day operations, help identify a clear action plan for process improvement, and clearly summarize the status of implementing strategic purchasing goals.
At the same time, it is important to emphasize that the purchasing manager should not drown in reporting, but should actively participate in the process of improving purchasing performance and providing guidance to his or her team, peers and management. Promitea's purchasing software includes a variety of standard reports that can be easily customized to meet customer needs. We place a strong emphasis on visuals and "at a glance" clarity.
Why is saving money no longer enough? Most of us who started out in purchasing in the last century remember the heroic tales of brilliant managers who managed to reduce costs by tens of percent through a combination of market power, toughness, and cunning. In this golden age of cost killers, purchasing was judged almost exclusively by parameters such as hard savings, acceleration of the purchasing process, reduction of administrative costs, and reducing the number of buyers. Unfortunately, hard savings cannot be made indefinitely.
Digital procurement is changing โ flexibility, the cloud, and mobility are now key.
When people talk about the impact of AI, most companies think of sales, marketing, or internal business processes.
How many times have you looked for a quote that โmust be somewhere,โ or lost track of whoโs supposed to approve the tender?
Return on investment within the first year of project implementation.*
*The ROI estimate is based on real data gathered from our clients and their successfully completed projects.
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