Procurement industry has its fair share of obstacles especially for individuals who work with related to supply chain management. These individuals are always facing new challenges on a regular basis. These are some of the most annoying and difficult obstacles faced by the procurement professionals.
- Lack of Internal Communication –In a company, supply chain management department, it is given the most priority. If there’s no smooth communication between the other departments, then it leads to issues during the time of purchasing. To tackle this type of problem, introducing a procurement strategy will surely help. In order for this strategy to work, the upper, middle and lower management must be ready to have a clear communication and on a regular basis.
- External Communication Blocks –When there’s still a problem with internal communication, your relations with the vendors and suppliers becomes hampered. One of the best ways to tackle such a problem is for the procurement people meet with their suppliers by talking to them on a regular basis. Check whether the suppliers have any type of problems and then come with a solution in a professional manner. This will ensure the procurement people maintain their strong relationship with the suppliers.
- Cost Control – Whatever the industry it is, the cost keeps fluctuating when it comes to products, material and transportation. Additionally, demand and value also changes on a regular basis. For the procurement process, the most challenging part is to control the fluctuations and still end up on the profit side. To tackle this problem, internal and external communication is the key where the procurement people maintain good relationship with the suppliers.
To understand more about procurement, it is important that you take procurement and supply chain management courses.