Does your staff have the right skills to help you achieve your goals for 2020? Are they ready to take on new challenges with confidence, achieve their own targets/goals, come up with innovative ways to improve and help the organization save money? If the answer is no, then you should consider investing in procurement training. Below are just a few of the benefits and the return on your training investment:
Procurement training can apply to any role including sales, finance, administration, procurement, etc. Depending on the size of the organization, budget constraints may prevent the company from hiring resources specializing in procurement. If this is the case, your staff can learn proven techniques and best practices of procurement.
1. IMPROVE EMPLOYEE PERFORMANCE
Procurement training will not only increase employee productivity, but it will also improve overall performance and team moral. Your staff will become more marketable and thus your organization will be known in a positive way for supporting your employees’ development and career path. In the long run, you will be saving by investing in your employees’ future while reaping the rewards of their new skills. It’s a win-win for both.
2. LEARN THE SKILLS TO IMPROVE PROCESSES & CUT COSTS
Many successful organizations are experiencing the value of lean methodologies such as Lean Six Sigma. The methodologies show you how to map out processes and eliminate the non-value-added or wasteful steps in order to save time and money while achieving the same or better end result. With a little training, anyone can learn how to document their processes, create flow charts and resolve problem statements. Applying these lean tools to procurement will reduce cost, increase your business value and make your operations more responsive to customers’ demands.
3. REDUCE EMPLOYEE TURNOVER RATE
Finding and on-boarding new employees is costly. Those costs include not only the direct costs such as recruiting, administrative fees and training, but also the loss of experience, company knowledge and distraction of managers and colleagues. It is a well-known fact that employees stay with companies longer if they are motivated, challenged and have a sense of value. Lower turnover rates and cost reduction can be achieved through training and recognition programs.
4. WIN MORE BIDS
All companies want to win more bids and educating your sales team in the procurement processes can help you do just that. Having more insight into the stages of procurement and learning how to prepare a more competitive proposal will enable organizations to be more successful in growing their business. Knowing the importance of mandatory requirements and avoiding the risk of being disqualified from the process. This can be costly especially when the contract value is large. Learn the difference between public and private Request for Proposals (RFP) and how to respond/comply with the Broader Public Sector Procurement (BPS) Directive.
5. LEARN NEGOTIATION TACTICS
Good negotiation skills can be developed through training. Negotiating is about being prepared and working together to not only achieve your optimal terms and price, but also to ensure that both parties win. If you build a strong and fair relationship with your suppliers from the start, you will have set the stage for fewer service/delivery issues and expensive change orders. Learn how to prepare for negotiation and develop strategies that will ensure your organization reduces its’ risk and achieves the best price. Being unprepared to negotiate can be costly. If you are not confident in your negotiation skills and don’t have time to learn, contact a procurement consultant to help you. The savings will pay for the expense.
To learn more about any of the above topics or to discuss a customized training program suitable for your company, please contact us.