Sellers, do you understand procurement?
Procurement plays an important role in most organizations’ buying processes. Sellers must be prepared to engage with and work to understand the needs of procurement, in order to successfully win opportunities. Procurement’s origins are in the negotiations and buying process for achieving consistent pricing.
Procurement departments have three basic functions.
- Support vendor engagement and contracting processes. This is largely a tactical and transaction-focused function. Today, procurement is increasingly involved in the purchase of services like consulting and training and custom solutions.
- Procurement oversees transactional purchases. It manages internal purchase transactions for ordering and receiving goods and services. As part of this function, it oversees and analyze procurement data with the goal of maximizing the efficiency of the transaction process and reporting.
- They facilitate strategic purchases. In this function, procurement works to ensure that purchases aligned with and support the overall organizational strategy and goals. This is where sellers can move past commoditization, by successfully communicating how their solutions promote the buyer strategies and goals.