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Technical procurement is an art in itself. It is the tension in which procurement professionals maneuver between two crucial aspects: quality and cost. At Xentys, a leading procurement recruitment agency, we understand this delicate balance like no other.
What is technical procurement?
Technical procurement is not just about finding the right products and services at the best price. It’s about looking critically at specifications, evaluating suppliers and making sure procurement fits an organization’s technical requirements and needs.
“Procurement is not just a matter of getting the lowest price; it’s finding the balance between price and performance.”
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The procurement process in five steps
Every procurement process begins with a plan. The 5-step procurement process is a structured approach that ensures consistency and effectiveness. From needs analysis to evaluation, each step is crucial.
- Needs analysis: what does the organization need?
- Market research: which suppliers can meet this need?
- Negotiation and contracting: How do you get the best deal?
- Ordering and receiving: Ensure a smooth process.
- Evaluation: How did the vendor perform?
A good procurement strategy uses tools such as the Kraljic matrix, which helps identify procurement risks and determine the right procurement strategy for different types of products and services. Using this matrix, buyers can decide when to focus on quality and when to focus more on cost.
The challenge: quality vs. cost
The tactical procurement process is where the real challenge lies. This is where the balance between quality and cost is sought. Too often only price is looked at, when total cost of ownership(TCO – Total Cost of Ownership) can be a better indicator of actual value.
In the world of technical procurement, creating a procurement plan is crucial. This sets out both the quality requirements and the budget. A clear plan ensures that both the buyer and the supplier know what is expected.
This is the first part of the article. At Xentys, we dive deeper into the world of technical procurement and help professionals find the perfect balance between quality and cost. Keep reading for more insights and strategies.
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Strategies for optimal balance
Going deeper into the core of technical procurement, we see that there are several strategies professionals can employ to find that golden balance between quality and cost.
Procurement Management
The role of procurement management is indispensable in this process. By optimizing supply chains and strengthening relationships with suppliers, costs can be reduced without sacrificing quality.
“A strong procurement team is the backbone of effective technical procurement.”
The Kraljic Model in Action
As mentioned earlier, the Kraljic matrix helps identify procurement risks. However, how do you apply this Kraljic model in daily practice? It’s all about categorizing products and services based on their impact on profits and the risks they pose. By making strategic decisions based on these categories, an organization can maximize its purchasing power.
Aligning procurement strategy with the organization
It is essential to ensure that the procurement strategy is well aligned with the organization’s overall goals and values. This means there must be consistency between the strategic, tactical and operational levels of procurement.
Find a buyer through xentys
At xentys, your experienced procurement recruitment agency, we are happy to help you find the right professional for your procurement team. Send a message today and strengthen your purchasing department.
Working with Strategic Suppliers
Purchasers should strive to build lasting relationships with strategic suppliers. These partnerships can lead to cost savings, better quality assurance and even innovation.
The role of recruitment in technical procurement
At Xentys, we understand that the success of technical procurement hinges on the right talent. That is why we offer specific services such as recruiting a procurement professional or employing an interim procurement professional. Whether you’re looking for a tactical buyer or someone for a more strategic role, we have the expertise and network to make the right match.
In conclusion, technical procurement is an art that requires balance. With the right strategies, tools and talent, an organization can both procure high-quality products and services and control costs. At Xentys, we are ready to support organizations and professionals in this exciting journey of procurement excellence.
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