Many organizations across the world are increasingly using the computers, internet, intranet and telecommunication to effectively unleash the power of information technology for the betterment of their businesses. A number of organizations are effectively using IT procurement best practices as a viable means for achieving this target.
What are IT procurement best practices?
An IT procurement best practice is nothing but a strategy that a company using information technology should follow and try to implement while taking decisions related to purchase of information-technology related products.
Thanks to new-age thinking, the concept of procurement has been given a much wider meaning. It encompasses a much wider scope of activities than mere buying of a good or service for meeting the needs of a business.
Buying is only a part – mostly a middle part – of the entire procurement process. The most important part of the procurement process, especially in connection with information technology, is the relationship between the buyer and the supplier. Building an effective relationship between the buyer and the supplier and having a fruitful and longstanding relationship between them is the essence of good procurement best practices.
The need for a separate department -Procurement – arises from the fact that saving costs while not compromising on quality is very vital for the success of the organization. It is in this context that building a reliable and longstanding relationship between the buyer and the supplier gains additional significance. Frequently replacing the supplier on the basis of competitive pricing is not a best practice. Though it might yield some short-term benefits, customer service might be the unfortunate loser in the long run. Reliability, fair prices and long-term assistance and support are the keys for better organization in general and procurement in particular.
One of the most important best practices that every organization, and its procurement department, should bear in mind always is involving the team in the process. The employees who are the actual users of the IT equipment should be involved in finalizing the needs of the organization. Not only will the ideal equipment required for the organization can be zeroed in through team efforts, the morale of the employees will be better managed, and, without the active cooperation of the employees, no company or organization can ever succeed.
Procurement plays a very important role in an organization. In an organization that is relying on information technology, the challenge for the department gains added significance. With innovative technologies emerging from branded companies every other day, showing loyalty to one single brand or technology might not yield the best results. A procurement best practice should be the one that gives more prominence to performance and reliability than sticking to any specific brand or technology.
Reducing costs and getting the best should always be the motto of the procurement department in an organization. An essential aspect of procurement best practice which is gaining more prominence and importance of late, is none other than e-Procurement. With the new-age technology of e-Procurement, involvement of middlemen or purchasing agents can be greatly reduced. Effective use of the e-mail and such other latest technologies will greatly enhance the interaction between the supplier and the buyer, thus enhancing the performance of the organization.
To summarize, the best of the procurement best practices should include the following things:
- building a healthy relationship between the buyer and the supplier
- involving the teams and employee representatives using the components
- not sticking to any specific brands
- exploiting the advantages of e-procurement.