Smart-Purchasing.com: Best Practices:Management

Best Practices: Process Management
Create Commodity Teams

Traditional	Best Practice
Cross-functional teams “do the deal”. Purchasing loosely coordinates subsequent supplier evaluations and commodity management	The same cross-functional teams are responsible for managing a commodity area throughout the entire deal and for continually investigating ways to create more innovative, value-creating sourcing arrangements

Rationale
Purchasing is a continuous process which requires continuous, rather than fragmented, management. Creates a platform for success. Establishes definite accountability. Creates continuity. Communicates to organization that supply management is important.
Details
Commodity Teams become a part of the official purchasing process. People are aware that semi-annually or quarterly the team comes together to discuss any pressing issues, develop supplier evaluation reports and address any other pressing issues.

Best Practice | Case Study | Commentary