If you are given the chance to transform your procurement organization from being reactive to proactive, what do you do in 10 steps?

Reactive is “doing the procurement as requested”. Proactive is “acting in advance and taking necessary action for forthcoming procurement request”. To become proactive form reactive, the following steps are suggested. 

1.  Supply Planning: In the beginning of the year, meet with each user to discuss with them what they would likely to procure. Get an advance list and immediately, prepare a detail supply plan.

2.  Strategic sourcing: Based on supply plan, issue “expression of interest” notification for enlistment/ prequalification of suppliers. If suppliers in certain category are missing, discuss with other organizations / trade association and prequalify the suppliers as required.

3.  Conduct meeting with the user sections to raise supply requisition as early as possible. 

4.  Consolidate similar procurement from different user sections to have economy of scale and to save time.

5.  Liaison with Warehouse: Check with warehouse the stock position before going into procurement action. Also check with warehousing Section that they have space to keep the ordered supplies.

6.  Procurement action: Issue bid as soon as possible to avoid any delay so that purchaser order could be issued in advance or at least on time.

7.  Supervise the progress of work: Monitor delivery /production of supplies so that the delivery is not delayed. Give sufficient time to the supplier so they can supply the quality goods comfortably with proper packing.

8.  Good Relationship with the supplier: Maintain very good relation with suppliers and support their queries as soon as possible

9.  Communication with user section: Maintain good communication with the user sections and inform them quickly as soon as the delivery arrives. 

.              Payment to the supplier: If possible put the payment term two-ten (“2/”) and net thirty (net “”), to get the early payment discount and pay to the supplier within ten days to get the two percent discount.

• Plan well. Appropriate time and effort must go into planning change before implementation begins.
• Allow for discussion and negotiation. Employees must have some input into the changes. This two-way communication can help reduce employee concerns.
• Allow for participation. If employees participate in changes that affect them, they are more likely to support those changes.
• Emphasize the financial benefits. If employees can earn higher compensation through organizational change, telling them about this possibility will help to increase support for the change.
• Avoid too much change. Employees can only handle a certain amount of change before there are negative repercussions from stress, so changes should be introduced slowly and over time.
• Gain political support. For change to be successful, certain key employees (those with informal power in the organization) must support it.
• Let employees see successful change. Employees will be more willing to support change if they see that it has worked successfully in other companies or other areas of their company.
• Reduce uncertainty. Uncertainty about the change effort can cause negative emotions and actions, and any information that change managers can give to reduce uncertainty can reduce resistance to change.
• Ask questions to involve workers. Change managers should ask workers questions that move them toward a goal or objective or that reinforce positive accomplishments.
• Build strong working relationships. Better working relationships in general will aid in change management; trust and mutual respect are critical elements of good working relationships.