Chapter 4.1
The 12 Problems of Procurement: Symptoms & root causes
Below we break down each of the 12 Problems of Procurement by:
The symptoms (how you might speak about them)
The root cause (why they exist)
The solution (click the links to learn more)
Unpacking the pain sets the foundations for the following chapter on connecting procurement end-to-end.
Also, check out the table below to see which of the 12 problems is felt most by your industry peers.
“We needed a platform to give us more control, more visibility, more transparency and give back time to the CAs and that's what we've found with ProcurePro. When people are operating on sites in isolation, when they're doing the letting process, that's when mistakes can be made. We might have a facade contractor that's on ten jobs and we think, ‘why did we do that?’ and nobody actually was talking to one another about it.”
Problem 1
No visibility
To find out procurement status, you’re physically picking up the phone, sending an email or tapping someone on the shoulder.
Most commercial teams only look at the status of each package in a weekly 1-hour meeting or when someone asks “where is this package up to?” or “have you got quotes back yet?”
Symptoms:
Root cause:
The Solution:
“We needed a platform to give us more control, more visibility, more transparency and give back time to the CAs and that's what we've found with ProcurePro. When people are operating on sites in isolation, when they're doing the letting process, that's when mistakes can be made. We might have a facade contractor that's on ten jobs and we think, ‘why did we do that?’ and nobody actually was talking to one another about it.”
Problem 2
Manual process
Emails, phone calls, and spreadsheets still dominate procurement workflows and, though we still love a spreadsheet, the majority of these processes can and should be automated to save time, reduce errors, and increase productivity.
Manual admin often takes 30-40/hrs per package, with 20-40 trades per project, and 10-20 projects a year.
Depending on the size of your commercial operations, that’s anywhere from 6,000-32,000 hours of manual work in a year.
Symptoms:
Root cause:
The Solution:
“ We don't procure any differently to every other contractor in the business. So, why on earth do we create all this process that's slightly different but brings no value? The fact that procurement is so fragmented, bringing it into a system brings visibility.”
Problem 3
Disconnected workflow
Procurement is a simple word for a complex process. From tendering to delivery, placing a package takes hundreds of actions across 20+ systems and processes.
This disconnect in your workflows leads to waster time as teams struggle with switching tools and losing track of their work.
Symptoms:
Root cause:
The Solution:
“Order approvals were traditionally done via email which became slow and inefficient and those trying to gain approval would struggle to know where it was in the system. It’s much quicker now because anybody can check and see where we are. The data is always there. It's a preset set of information to be filled in so approvals are much more quicker and much more efficient in terms of getting signed contracts back from the supply chain.”
Problem 4
Delayed procurement
Engaging your supply chain at the early stages of a project is an enormous workload while under significant time pressure. You’re trying to procure quickly to deliver on time, but also diligently to ensure you’re maximising value and margins whilst it’s in a competitive state.
High-risk high-value packages are on the critical path. Procurement delays are frequent, impacting programme which has a domino effect on the project.
Symptoms:
Root cause:
The Solution:
“We look at the procurement performance. Now, it used to be quite ad hoc. We had an Excel tender event schedule that was put up on the screen and no one could read it. No one could understand it. Now the reports, and there are many of them, that ProcurePro allows us to generate allows us to see exactly where every single package is in the process, how we're doing against budget, if there's initial tenders returned.
Problem 5
Limited executive reporting & insights across projects
Engaging your supply chain at the early stages of a project is an enormous workload while under significant time pressure. You’re trying to procure quickly to deliver on time, but also diligently to ensure you’re maximising value and margins whilst it’s in a competitive state.
High-risk high-value packages are on the critical path. Procurement delays are frequent, impacting programme which has a domino effect on the project.
Symptoms:
Root cause:
The Solution:
In this chapter
The first step to better building
4.2 – Can’t solve supply chain, without procurement
Practical guidance on solving these 12 problems in your business, including an exclusive webinar with industry voices.
Watch the on-demand webinar
Skip the reading and watch our webinar on The 12 Problems of Procurement, with industry guests Mark Tant and Thomas Reinhardt.
