Spending Season is here, Can Procurement Help? March 21, 2019, 3:55 p.m.

shopping season

The spend by individuals and organizations during Christmas period all over the world is huge. Presents are flowing like a river, there isn’t enough joints for yearend parties and all modes of transport are fully booked.

This is the season for gifting yourself and gifting others, it will happen whether individuals and organizations have money or not.

With all this pressure, how can procurement help? I have tried to use the principles of procurement to help the gift buying behavior.

This season, when everyone is planning their gifting and entertainment options. Better planning and knowing what you are going to buy and for whom, is probably the best practice before choosing to spend.

Coming from the procurement domain, one thing that I understand well is how to curb the spend and increase savings.

Let’s see if we can use some of compliance from the procurement subject and plan this month’s shopping. However, before reaching for the compliance, let’s see what procurement actually does. Procurement is the overarching function that describes the activities and the processes to acquire goods and services. It looks at the fundamental requirement, sourcing activities like market research, vendor evaluation and negotiation to contract.

Here we are going to apply the procurement methods to acquire the right gift and minimize spend at individual or organizational level.

Below are the 4 steps that will help you buy your pocket efficient gift:

Step 1Budgeting Determine the amount that you want to spend. Chalk out a plan before you choose to go gift shopping. Once the budget is set you need to think about the perfect gift that will fit your budget.

Step 2Market Research: Your budget is set and you have thought about the gift, the next obvious step is to find the vendor you are going to buy it from. Make a list of vendors and carefully evaluate each of them.

Step 3Vendor Evaluation: Set an evaluation criteria – best price, best quality, best service delivery time etc. Make sure you evaluate at least 5 vendors before closing the deal on one.

Step 4: Purchasing: Once you have evaluated all the options, find the perfect vendor and place your order.

Step 5Maintaining the vendor record: Keep a note of the contact details and other information about the vendor. So that if needed you can place a complain  or you if you choose to use him in future.

Hope these steps help you, with your Christmas shopping. Wish you a happy holiday season!