30.1 C
Sunday, January 16, 2022
HomeProcurementThree Best Practices for Construction Procurement

Three Best Practices for Construction Procurement

The procurement team in the construction industry is responsible for sourcing high-quality products and services with a specific budget and regulatory guidelines in order to successfully operate a business or complete a project. It is believed that a good procurement in construction, which relies on industry knowledge, experience, and the right technology, is synonymous with a successful project.

This article discusses the three best procurement practices that can be implemented by construction companies to achieve the company objectives. These practices involve performing procurement benchmarking, investing in cloud-based procurement tools, and practicing strategic collaboration in procurement.

Performing Procurement Benchmarking

Procurement benchmarking is about measuring the procurement performance and making the appropriate adjustments to help a company to identify new sources of value, pinpoint new capabilities, and make case for change. This benchmarking can be performed by using procurement analytics and purchasing Key Performance Indicators (KPIs) such as cost avoidance, purchase order cycle times, and supplier compliance rate. It aims for continuous improvement in better productivity, completion rates, and higher quality performances.

The full content is only visible to SIPMM members

Already a member? Please Login to continue reading.

Fion Koo Fong Ying, DPSM
Koo Fong Ying, Fion has substantive years of experience in purchase planning, and specifically in the construction sector. She is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Fion completed the Diploma in Procurement and Supply Management (DPSM) on March 2021 at SIPMM Institute.

Most Read