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.