Why do you need a procurement policy?
Procurement policy answers who (is responsible), what (are they doing), where (are they working), when (do they take action), why (are they taking action), and how (do they need to carry out their responsibilities). These rules and procedures will standardize your procurement processes and ensure they are consistent across the board. Lack of consistency, which may stem from a lack of policy, may result in stakeholders perceiving the procurement function to be disorganized at best and corrupt at worst.
Unsure of how to begin creating one?
Below you will find a link to download a procurement policy template. This template can provide you with a place to start. By no means is it designed to be one size fits all. You may find that you need to add sections or take some away, depending on your organization’s needs. However, if you are creating a policy from scratch, these sections should be enough to cover the basics while also leaving you room to customize it as you see fit.
Policy development takes teamwork.
Developing a procurement policy is, ideally, a collaborative process. Seek input from stakeholders, especially from those who will be directly affected by the policy. Once it’s in place, revisit it on a regular basis since the policy should evolve as your procurement function matures and your business grows.
Review your procurement policy on a regular basis.
Your procurement policy should be considered a living document. Use it to onboard new employees, but also review it periodically with current employees and use their feedback to make necessary changes. Individual sections can also be updated – such as when you implement a new e-procurement solution or change the function’s organizational structure. It is also important to review the section on ethics and code of conduct yearly or quarterly; even if you don’t change it, all procurement officers should have frequent reminders of the ethics valued in your organization and the behaviors expected of them.
Mitigate risk and improve efficiency
with a comprehensive procurement policy.