Wednesday, August 11, 2010

Looking at the big procurement picture

Employee productivity is a topic most frequently discussed on ProcurementAsia’s sister brand, Human Resources, but I shall jump into that for this Beer Blog as well.

The reason is simple: procurement professionals are employees and their welfare does matter to the overall productivity and outcome of the organisation.

In procurement, long hours are spent trying to drive a hard bargain and trying not to let a single cost defect slide. Therefore, it is imperative a company does not overlook the health and overall productivity of its procurement department.

In a report by Purcon, it says that employers of procurement workers should take note of the overall productivity of its employees, rather than the number of hours people are putting in.

“The most important thing that managers need to recognise is that the most fundamental thing is output not input,” says Mike Petrook, head of public affairs at The Chartered Management Institute.

However, I would say it is difficult to focus on the big picture sometimes, especially during the recent financial crisis where cost-cutting measures are implemented so drastically and spend is controlled with an iron arm. Hours put in by a company’s employees may not be ignored intentionally, but unfortunately so.

In procurement or any other department out there, it is important to remember to know when it’s enough. If it's inconvenient to take a break, then it's time to think positive. While easier said than done, let this article from Human Resources offer you some insight on how it's done.

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