Identifying and Addressing Key Challenges in Procurement Operations

by | Mar 1, 2024

A recent survey by CIPS and RS has identified three major challenges that procurement professionals face in their daily work. These challenges hinder organizations from efficiently optimizing their procurement processes.

At Enhance Hospitality, we understand the complexities and challenges inherent in procurement operations. As your trusted partner, we offer tailored solutions designed to address the key pain points identified in the survey.

1. Talent Acquisition & Knowledge Gap

According to the survey findings, 33% of participants considered finding skilled individuals with expertise in procurement best practices as their main difficulty. It highlights the crucial need for talented procurement teams.

Organizations cannot simply hire professionals but must also ensure their proficiency in handling complex procurement scenarios that help to optimize performance, increase efficiency, and generate value.

How Enhance Hospitality optimises procurement:

Our experienced procurement team becomes an integral part of your in-house team, lightening the workload and applying industry knowledge and best practices to drive measurable improvements. Our expertise has been refined over a decade of experience, guaranteeing successful outcomes.

2. Contract Compliance & Cost Management

Three in 10 respondents find contract compliance with suppliers difficult. Also, about 30% of companies struggle to achieve annual cost savings and maximise returns on investment. This shows how important it is to spend wisely and get the most for your money.

To solve this problem, companies can use technology to automate contract management and monitoring. By keeping all contracts in one place and using tools to manage the contract lifecycle, procurement teams can better see how contracts are doing, make sure they are being followed, and quickly find ways to save money and reduce risk.

How Enhance Hospitality improves contract management:

We use advanced contract management software that provides a centralized platform for accessing, managing, and monitoring supplier contracts. With features such as automatic notifications and comprehensive contract tracking, we empower organizations to maintain compliance, mitigate risks, and optimize contract performance.

3. Technology Adoption & Spend Visibility

Many businesses (25%) struggle to control their purchases because they don’t invest in technology. Another 18% say they can’t clearly see their spending. Technology is important in today’s digital world for making procurement more efficient and transparent.

Companies can solve this problem by using new procurement solutions that give real-time data on how much is being spent, how suppliers are doing, and how procurement works. Procurement teams can make better decisions, use their resources better, and make strategic decisions by investing in advanced technologies like eSourcing platforms and spend analytics tools.

How Enhance Hospitality leverages technology for greater efficiency:

Using innovative technology, such as eSource Wizard, we empower procurement teams to operate with unprecedented efficiency and effectiveness. We leverage data analytics and automation to refine the procurement process, expedite decision-making, and create sustained cost reductions for our clients.

The challenges highlighted in the survey underscore the importance of proactive measures to optimize procurement operations and drive strategic value for organizations. With the right combination of expertise, management controls and technology, organizations can overcome these challenges and achieve sustainable success in today’s dynamic business environment.