Don’t be scary with your procurement this Halloween: how to avoid bad practices in procurement

Halloween might be about frights, but your procurement process shouldn’t be one of them!  Poor procurement practices can lead to increased costs, supply chain issues, and damaged supplier relationships. Avoiding common procurement pitfalls can save time, money, and relationships with suppliers.

At Accelerate, our team of procurement consultants have over 100 years of combined experience, so we know a thing or two about bad practice in procurement and how to avoid it. Here’s our guide on how to identify and avoid some common pitfalls…

Common Procurement Mistakes

1. Poor Planning: Jumping into procurement without a clear plan can result in rushed decisions, higher costs, and wasted resources.

Solution: Develop a procurement strategy. Define your requirements, set clear goals, and align them with your overall business objectives. A strategic plan will guide the process and help avoid last-minute scares.


2. Lack of Clear Specifications:
Not defining clear requirements for goods or services can lead to confusion and mismatched expectations with suppliers. This often results in receiving substandard products or services.

How to avoid: Before starting the procurement process, outline detailed specifications for each item or service you need. Consult stakeholders to ensure all requirements are covered.

3. Overlooking Supplier Vetting: Skipping due diligence is a bad practice which can lead to working with unreliable or low-quality suppliers, affecting the overall value. Failing to thoroughly assess potential suppliers and rushing through the supplier selection process without proper vetting can lead to issues with quality, delivery, and compliance down the line.

Solution: Conduct thorough due diligence on all potential suppliers. Check their financial stability, reputation, and compliance with industry standards. Implement a robust supplier evaluation process. Consider factors like reliability, past performance, compliance standards, and financial stability. Due diligence reduces risks and ensures you’re working with trustworthy partners.


4. Poor Supplier Communication: Leaving suppliers in the dark about changes or updates is a surefire way to create problems. Effective communication is vital to maintaining good supplier relationships and ensuring smooth transactions.

How to avoid: Keep an open line of communication with suppliers. Set up regular check-ins, provide clear feedback, and update them on any changes in requirements or schedules.

5. Focusing Solely on Cost: Choosing the cheapest supplier might seem cost-effective, but it often leads to subpar quality and hidden costs.

Solution: Think beyond price. Assess the total value, including quality, reliability, service, and after-sales support. Opting for suppliers with higher standards can lead to better long-term outcomes.

Best Practices to Adopt

Avoiding bad practice is key to procurement success, but adopting best practices in their place is just as important. We recommend the following strategies:

1. Build strong relationships: Treat suppliers as partners rather than mere providers. A collaborative approach can lead to better deals, improved quality, and innovation.

2. Embrace technology: Use procurement software to streamline processes, improve accuracy, and maintain transparency. This reduces the likelihood of errors and allows better tracking of contracts and supplier performance.

3. Focus on total cost: Don’t just consider the upfront cost. Take into account the total cost of ownership, including delivery, maintenance, and quality. A slightly higher initial price may lead to long-term savings.

4. Strive for continuous improvement: Regularly review your procurement practices. Identify areas for improvement, seek feedback from stakeholders, and adjust processes as needed.

Avoiding bad procurement practices: how we can help

Avoid these ‘scary’ procurement practices, and you’ll find that building a robust, transparent process isn’t as frightening as it might seem. A strategic, well-organised procurement approach ensures you get the best value while fostering healthy supplier relationships. By avoiding these common mistakes and adopting strategic practices, your procurement process will become a treat, not a trick!

If you need support when it comes to streamlining your procurement processes and ensuring you are fully utilising best practices, we can help. At Accelerate, we can support organisations across a range of sectors on all facets of procurement. We help businesses apply strategic thinking to procurement and overall growth, and work with your internal teams to creatively solve problems and realise opportunity. If you think we could help to support on your procurement requirements, get in touch today.

Happy Halloween, and may your procurement be free of tricks!

If you’re ready to take your business to the next level, get in touch with Accelerate today for a friendly chat.