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.
Effective purchasing, aligned with the company's key needs, contributes to long-term goals such as profitability, competitive advantage and growth in company value.
In this article we take a detailed look at the issue of home-grown software add-ons, which are found in many companies and which, despite all efforts, usually represent a major obstacle to effective and professional purchasing.
I confess that when I became a purchasing director with the authority and responsibility to develop my department, my primary focus was on developing purchasing skills, collaboration with other departments, centralization, purchasing controlling and implementing at least minimal supplier relationship management.
Qualified suppliers who know our business perfectly, have the necessary technology, innovate and continuously improve are a source of competitive advantage for every company. It is therefore no surprise that buyers guard their know-how in supplier management like an eye in the head.
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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