PROCUREMENT OVERVIEW
Procurement uniquely assumes a dual role within 8Se7en’s structure and provides a pivotal ingredient in its success formula. For our defence, humanitarian aid and disaster relief clients, sourcing of material, supplies and services is critical to operational readiness and effectiveness of expenditure. In the provision of defence, humanitarian aid and disaster relief related logistics, 8Se7en offers an integrated menu of services including deployment management, installation services and logistics, all of which depend on an effective procurement management system to achieve the Company’s and client’s goals.
Challenges Faced by Organizations Today
Risks & Controls
- Dark purchasing/outside the process which can be expensive for a business
- Dealing with compliance issues
- Contract Management
- Incidents of fraud
- Last minute buys
- Spend transparency
Supplier Issues
- Finding the best suppliers and tools
- Quality challenges
- Stable supply
- Timely and complete deliveries
- Management of multiple suppliers at once
- Monitoring supplier performance
Processes Inefficiencies
- Lack of standardization of processes and efficiencies
- Not properly documented or communicated information
- Last minute buys impacting costs, quality and deliveries
- Clear authorities
- Too many or too few layers for approvals and sign-offs
Organization
- Shortage of procurement resources with a strategic view and numeric capabilities
- Limited partnership between procurement and the business
- Legacy structures
Costs
- Economic/Market pressures to reduce costs, achieve savings and maintain or enhance quality
- Remain within budget on projects
- Lack of consistent measurement of procurement savings
Data Availability & Accuracy
- Organization not having necessary technology and tools
- Tools to support analysis and measurement
- Availability of immediate access to organized and accurate information and user friendly access