How many of us have been there or still here ?
Overloaded, stretched thin, constantly in firefighting mode, & still needing to justify every headcount request?
The business wants results, but procurement teams are often expected to deliver more with less.
Is “less is more” a chronic trend for procurement?
We have a couple of issues here. Let’s break them down and find solutions.
1. workload vs headcount
We manage procurement end to end -> request to delivery, monitoring, & improvement… & the list goes on. It won’t fit in a post.
Yet, headcount is often based on transaction volume rather than strategic value.
2. firefighting vs strategy
We get pulled into urgent issues, leaving little time for long term improvements.
But first, let’s challenge some unrealistic expectations:
–> expecting procurement to reduce costs, manage risk, contracts, finances, payments, planning, & be strategic… but not providing the headcount, tools, or training to do so, let be honest!
–> seeing procurement as a cost center instead of a business enabler that directly impacts revenue, compliance, & risk. Can we please change this?
–> assuming that technology alone can replace skilled professionals? ……..No comment!
So, how can we break this cycle & create space for proactive work?
1. a major gap is training & development is still remaining!
2. we’re expected to navigate complex markets, negotiate better deals, & drive innovation… but where’s the structured investment in upskilling procurement teams?
Hence our need to justify for more support!
– to shifting from struggling to well resourced, we need to speak the business language (aka Finance, numbers) & provide justified numbers.
-to keep in mind that our resource challenges directly impact the bottom line:
– we increases costs -> firefighting, contract backlogs, & poor negotiations lead to higher costs & missed savings.
– we take bigger risks -> understaffing increases compliance violations, supplier disputes, & bad contract terms!
– we lower our efficiency -> manual processes & outdated technology waste valuable time & resources…
So here are some methods to justify aka beg:)
1. span of control method : it compares procurement teams against industry norms (number of FTEs per xx $ spend)
2. workload analysis : it helps tracking procurement cycle times, supplier count per buyer, contract volume per resource….
3. cost of vacancy calculation : it estimates lost savings or increased risks due to understaffing
4. ROI on training/ dev : to showcase how improved negotiation skills can drive measurable savings, increase motivation, develop leaders…give numbers!
What’s been your biggest challenge when it comes to resources?
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