Procurement organizations face many challenges in today’s environment. Receiving the right supplies, at the right time, in the right quantities is often easier said than done. Working with many suppliers to receive goods that are defect-free is not for the faint of heart. Lean Six Sigma principles and techniques provide an excellent toolset for working with the many challenges these organizations face.
For example, Lean Six Sigma can be used to:
- Ensure prompt delivery of quality goods and services
- Elimination of non-value-added processes in the procurement arena
- Reduce the number of invoice discrepancies
- Reduce cycle time reductions in the following areas
- Requisition-to-order process
- Invoice approval
- Contract creation
- Supplier-on-boarding
- Reducing sourcing cycle times
Other projects that can be addressed may include:
- First-pass invoice match rates
- Spending with line item visibility
- Requisitions that are correctly coded and classified
- Orders generated and delivered electronically
Streamlining your procurement process increases the company’s profitability and maximizes efficiency. Working with your suppliers, using Lean Six Sigma techniques, will definitely ensure the success of each organization.