Creative Procurement
Creative procurement is defined as applying innovative, creative strategies to the purchasing process. It entails looking outside the current supply chain and exploring new ways to source products and services and build supplier relationships. For buyers, this can result in cost savings, better quality, improved performance or a wider range of products and services.
One of the basic principles of creative procurement is to focus on the needs of the end user. Buyers should really evaluate the needs of their customers and identify the exact requirements to determine their purchasing needs. They should also ensure that any suppliers selected can fulfill these requirements. This process also involves researching the market to identify potential sources that may be able to offer improved solutions and services. In some cases, the supplier research should not only be focused on current suppliers, but also potential suppliers who could potentially offer solutions that are more cost effective or better suited to the buyer’s needs.
In addition to the necessary research, creative procurement also involves actively engaging with suppliers. This involves more than just soliciting bids and comparing prices; it involves actively engaging suppliers in conversations to understand their capabilities. Buyers should look to bring suppliers in early in the process to understand their capabilities, services and solutions that they can offer. Buyers should be able to have honest conversations with their suppliers and build strong relationships with them. This can lead to more effective negotiation and more open collaboration between buyers and suppliers.
Another key aspect of creative procurement is to think outside the box. Buyers should look for new solutions or services that are outside of the current supply chain. This could involve using alternate suppliers, using new technology, exploring new materials, or even looking for new ways to source products and services. Buyers should also be open to working with suppliers in different countries or regions that may offer better solutions or services. This could result in cost savings or a better end product for the buyer.
Finally, buyers should also look at supplier relationships from a long-term perspective. This can result in better supplier loyalty as well as positive feedback from suppliers. Suppliers that feel supported, valued, and appreciated by their buyers will often respond with better performance and better terms. Buyers should also look for ways to incentivize suppliers with attainable goals and rewards, creating an environment in which suppliers can thrive and benefit.
In conclusion, creative procurement is an important part of the procurement process. Buyers should be willing to explore new options, research the market for new solutions and services, actively engage with suppliers, and look at supplier relationships from a long-term perspective. This can result in cost savings, improved performance, a better end product, and improved supplier loyalty.
