Procurement should be continuously pursuing cost and efficiency gains across procurement, the wider organisation(s) and the supply chain, via activities such as:
Working innovatively and collaboratively with suppliers and stakeholders/business partners to identify opportunities for supply chain improvements, and putting the appropriate action plans in place to fully explore and deliver the identified opportunities
Measuring every aspect of procurement from source to pay and where possible, benchmarking against similar organisations
Creating a formal Continuous Improvement Team / Working Group to regularly meet and review on-going initiatives and identify new opportunities, whilst having a process in place to allow informal ideas to be raised and recorded from all areas of the Organisation. More information can be assessed via the Continuous Improvement guidance.
From a procurement/supply chain perspective, effective Contract and Supplier Management (C&SM) is a fundamental driver of continuous improvement from a procurement / supply chain perspective. Where an organisation has a fragmented or informal approach to C&SM it may be necessary to build a business case to lay out the risks and missed opportunities in this approach, and to highlight the benefits of embedding C&SM across the organisation. A Business Case template to help justify the case for embedding C&SM can be used.