From Fire Drills to Foresight: 5 Steps for Early Procurement Involvement

Early procurement involvement can be a complete game changer for your business. Procurement often acts as the relief pitcher of the finance team. They come in late in the game once purchasing decisions have been made, and simply give their stamp of approval to seal the deal. It's understandable why this happens—looping in another team can seem like a surefire way to slow things down, especially when deadlines are looming.

But this approach is a recipe for trouble. Late procurement involvement can trigger a chaotic domino effect: mountains of paperwork, frantic fire drills, and a foggy view of your spending. It might sound counterintuitive, but waiting until the eleventh hour to bring in procurement often creates more work and headaches than involving them from the start.

Your procurement team is capable of so much more than just rubber-stamping decisions. Bringing them to the table from the get-go can unlock a host of benefits that ripple across your organization. You can shift your way of operating from firefighting to proactive strategizing, from cost-cutting to value creation.

Benefits of early procurement involvement 

Cost savings and better supplier relationships

When procurement has a seat at the table from the start, they have the time and leverage to really dig into negotiations, explore the market, and find the best possible deals. Rather than trying to squeeze every penny out of a supplier, they can focus on finding partners that strike a balance between cost-effectiveness and cultural fit.

Strong supplier relationships open doors to all sorts of benefits, such as early access to new products, preferential treatment during supply chain disruptions, and even opportunities for co-innovation.

Risk identification and mitigation

They’re never fun, but disruptions are an inevitable part of doing business. Supply chain snags, unexpected price hikes, regulatory changes…any number of risks can pop up when you least expect them.

Through strategies like continuous risk assessments and supplier performance analysis, procurement can become your financial radar system, constantly scanning the horizon for emerging threats. Rather than reacting to problems as they arise, you can proactively identify and mitigate them before they cause chaos in your operations.

A second set of eyes is invaluable in any risk mitigation effort. Procurement can be a useful watchdog if they’re brought on board early.

Accurate budget planning and cost control

For all the work that goes into it, budgeting can largely feel like a guessing game. You’re trying to predict the future, often with limited information and a healthy dose of uncertainty. That said, budget accuracy is imperative for resource planning and cost control—PwC found that “65% of procurement departments name cost control as their top priority”—and any extra insights that finance can get their hands on are welcomed.

Procurement staff are the experts on what things actually cost. As McKinsey highlights, they have a “deep understanding of the value chain and supply markets,” making them a useful resource during budgeting season. Bring them in early, and you'll tap into a wealth of knowledge that can help you build a realistic budget and spot potential savings.

Procurement can also help finance keep track of spending beyond budgeting season. With their finger on the pulse of spending patterns and supplier relationships, they can help you track expenditures in real-time, spot any deviations from the plan, and take corrective action before things spiral out of control.

Fewer fire drills

Picture this: it’s 4:55 PM on a Friday, and you get an email that your project team needs a critical piece of equipment by Monday. Panic sets in—you frantically start calling suppliers, only to find they're closed for the weekend. Cue the stress, frenetic emails, and inevitable scramble for a solution.

Last-minute procurement fire drills are stressful, to be sure, but they’re also incredibly inefficient. They strain the team and often lead to rushed decisions and subpar outcomes.

While some emergencies are unavoidable, early procurement involvement can significantly reduce those fire drills. When procurement is involved from the beginning, they can work hand-in-hand with finance to anticipate needs, establish clear lines of communication with suppliers, and get contracts ironed out well in advance.

Supercharged innovation and collaboration

Procurement pros bring a fresh perspective and a wealth of market knowledge to the table. They can become a creative spark plug for your finance team by introducing them to new technologies and exploring creative solutions they may have not considered on their own.

When procurement, finance, and other stakeholders collaborate from the outset, they can brainstorm ideas and develop solutions that no single department could dream up alone.

And let's not forget the power of strategic sourcing. The market is constantly evolving, with new products, services, and technologies emerging on a regular basis. Early procurement involvement gives you the time to explore these options and make informed decisions that align with your long-term goals.

5 practical steps to engage procurement early in your process

1. Integrate procurement into project planning

A good procurement team can help finance teams lay a solid foundation for a complex project. They can identify potential roadblocks, provide accurate cost estimates, and develop realistic timelines based on their experience with suppliers.

Here are some tips to seamlessly integrate procurement into your project planning process:

• Invite them to the kickoff meeting: Make procurement a key player from day one. Include them in brainstorming sessions, strategy discussions, and any other meetings where project goals and requirements are being defined.
• Factor procurement into resource allocation: When you're mapping out your project resources, consider the time and expertise procurement will need to contribute to the project and ensure they have the bandwidth to support your efforts.
• Develop realistic timelines with procurement input: Procurement professionals understand the complexities of sourcing and supplier management. Their insights can help you develop more accurate timelines, accounting for factors like lead times, negotiations, and potential delays.

2. Implement intelligent intake forms

It’s no secret that traditional purchase requests can be a nightmare. They're often riddled with missing information, unclear requirements, and endless back-and-forth communication. It can feel like trying to assemble a puzzle with half the pieces missing.

There’s a smarter way to do this. Intelligent intake forms streamline every aspect of the process, ensuring every purchase request is complete, accurate, and ready to go from the start. Think of them as your procurement concierge, guiding requesters through the process and ensuring all the necessary details are captured upfront.

No more chasing down missing information or deciphering vague requests. Intelligent intake forms provide a clear, structured framework, prompting users to provide all the relevant information needed for a smooth and efficient procurement process.

Give Tropic’s intelligent forms a try today and see what a more efficient, compliant, and transparent procurement process can look like.

3. Establish clear communication channels

Miscommunication can derail even the best-laid plans, and when procurement and other departments are operating in silos, it can become a game of telephone. Misunderstandings arise, and things inevitably slip through the cracks.

Initiatives like regular meetings, shared project management tools, and a centralized hub for procurement information can all help foster collaboration and keep everyone on the same page. 

Also, be sure to set up monthly spend reviews. It’s a best practice for organizations of all sizes and provides a forum for open discussion around spending patterns and areas for improvement.

4. Leverage technology and data analytics

The right technology platforms can’t replace your procurement team, but they can make them a whole lot more effective across a number of areas:

• Data analytics: Basing decisions on gut feelings is a relic of the past. Robust analytics tools can help you track spending patterns, identify cost-saving opportunities, and make data-driven decisions that move the needle.
• Streamlined processes: The right procurement software can put an end to manual approvals and endless email chains, streamlining workflows so your team can focus on more strategic work.
• Supplier relationship management: Centralize supplier information, track performance, and foster collaboration with your most important partners.

5. Provide training and support

Early procurement involvement is a game-changer, but it's not something you can just flip a switch on and expect instant results. Your procurement team needs the right tools and support to thrive in this new, proactive role.

Training and support can take many forms:

• Workshops and seminars: Provide opportunities for your team to learn from industry experts and stay up to date on the latest trends.
• Mentorship and coaching: Pair experienced procurement professionals with newer team members to provide guidance, support, and knowledge transfer.
• Regular feedback and recognition: Acknowledge your team's hard work and celebrate their successes. Provide constructive feedback to help them improve and grow.

Tropic: Your all-in-one procurement partner

Early procurement involvement can transform your procurement process from a reactive scramble into a proactive, strategic powerhouse. But to achieve this, you need the right tools and technology to support your team.

​​Tropic's platform is designed to streamline your entire procurement process, from initial requests to final approvals, ensuring that procurement is involved every step of the way.

Here are some of the ways Tropic supports early procurement involvement:

• Unified spend management: Gain a 360-degree view of your spending across all categories and departments. Tropic's unified platform brings all your data together, making it easy to track, analyze, and identify opportunities for early procurement involvement.
• Sourcing intelligence: Make informed decisions with Tropic's powerful sourcing intelligence. Access industry benchmarks, negotiation playbooks, and supplier insights to identify the best suppliers and negotiate favorable terms from the start.
• Match spend to contracts: Receive automatic reminders to ensure that all spend is tied to approved contracts.

Break free from the reactive cycle of late procurement involvement and embrace a proactive, strategic approach. Try a free Tropic demo today and see the difference for yourself.