Procurement: Mandate Only What Makes Sense


Last week, Pierre Mitchell returned to his series over on Chief Procurement Officer of knocking down the top procurement myths that exist. This time, in Procurement Needs a Mandate: Procurement Myth No. 19, Pierre talks about the myth that a number of mandates must exist within procurement organizations.

Sure, certain mandates may make sense for the organization. Others, however, simply do not. As Pierre writes in the article:

“Don’t get me wrong – there must be a sensible policy to ensure employees can’t contract with suppliers, especially non-preferred ones, above certain dollar limits. But what tends to happen with a mandate-heavy approach is that procurement gets engaged too late in the process and loses leverage and savings potential. Also, when the spending limits are set too low and start dipping into the upper end of tail spend, the deal can’t be worked as deeply, cycle times lengthen, stakeholders get frustrated and procurement takes a big step backwards in terms of its brand.”

Head on over to our Chief Procurement Officer to read the full article. You can also check out other myths in the series below.

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