Is it possible to lift procurement functions to an even higher level — without being handed a blank check? Good news: It can be done, purchasing experts confirm.

At least one purchasing pro has laid out a five-step plan for making over procurement into a more focused, more effective part of your company’s success.

Charles Dominick of Next Level Purchasing has created a guide for your procurement operation to follow, to help you work toward becoming a world-class organization.

The plan:

1. Where do you want to be? Try to set a definite goal and timetable for getting there. Are you aligned with your company’s needs and expectations?

2. Where are you now? Conduct a census of who’s involved, what abilities they bring to the job, the state of your technology, and the budget for your operations. Consider this your starting point.

3. What needs to be done? Analyze the difference between where you want to be and where you are now. Begin to formulate your game plan for getting there and make list of what you’ll need to get it done. What technology needs to be added? Where will it come from and what will it cost?

4. Build your team. Establish relationships with the key stakeholders at your company — your department head, Production, etc. Share your plans, ask for their feedback, and pin down their support. Show how your plans will be cost effective — even save the company money — in the long run.

5. Formulate ground rules. Obviously, this isn’t going to happen overnight. Don’t make promises to other managers that might be difficult to follow through on. Keep expectations realistic — in fact, there might even be a dip or two along the road to improvement.

Tags: procurement, production, purchasing