A procurement manager is not typically the first person that comes to mind when you asked about innovation in a company. However, much rests on his or her able shoulders. It is up to a procurement manager to find out ways in which the company can benefit further. The job description of a procurement manager may vary among companies, however there is much more to the position than simply placing orders, handling procurement and overseeing requisites across various departments; a valuable procurement manager is also one of the company’s innovation leaders.
Normally, when it comes to innovation probably the first people that come to mind in a company are its IT manager and business development manager. A business development manager may be working on new projects and developing presentations about new ways the company can innovate and expand the business. The IT manager or a Chief Information Officer is constantly looking at ways to upgrade the existing hardware and software. In many cases, in this rapidly evolving industry, there comes a point when upgrading no longer makes sense in the presence of new technological innovations in the market.
A procurement manager also has to work towards better procurement policies, better vendor management, seamless purchasing and delivery and also to efficiently manage the items or equipments in stock and the necessary requisitions. They are the eyes that see everyone throughout the company and all departments. They are responsible for procuring these requests. In the process of all of this, it is actually the procurement manager that discovers innovative solutions to not only their own processes, but those in every department throughout the company.
Here are some instances where a procurement manager can employ innovation for the benefit of the company. A procurement manager can contribute to a company’s innovation is by converting to cloud procurement. Conventional purchasing practices have been replaced by P2P systems and they have further been developed to be used as apps on smartphone. Cloud procurement has a plethora of benefits for companies and it should be a job of the procurement manager to come up with such recommendations which can dynamically change the way a business operates.
A procurement manager researches the vendors and the items that are put up for procurement. In so doing, he or she may find newer, more innovative products to fulfill a PO that maybe the department head that requested was not aware of. Or maybe in researching other vendor options the purchasing manager finds a vendor that has innovated beyond that of a current vendor and is replaced, adding more selection and options to the catalog for department heads to view. In so doing, the department heads then find innovative solutions to standard requests or problems they face.
Therefore, a procurement manager not only recommends innovation but also sees to it that they are put in place and adapted to by every department in the business. So if you really stop to think about it, a procurement manager can play a huge role in a company’s practices, revenues, budgets and also profits as they lead your company’s innovation.