Do you have a procurement policy outlining your procurement process, spend thresholds and rules? Do teams adhere to it? Do they even know it exists?

A procurement policy is an important pre-requisite for controlling spend. It should be accessible to all staff who have the authority to purchase goods and services in an easily readable format.

Procurement Policy Basics

A procurement policy is a set of guidelines used to establish and standardise the procedure for purchasing goods and services in a business and should cover the following:

Policy objective. What are the goals of the policy? For example, is it to provide a consistent process for use by all departments? Is it to ensure that all procurement activity is aligned with company goals and values?
Process overview. The policy should include a high level summary of the procurement process detailing the steps involved (a flow chart is often useful here).
Procurement thresholds. Spend limits for staff and the criteria for the type of procurement activity required, e.g. number of quotes, tender, etc.
Tender process. The policy should include an outline of the formal tender process for purchases that meet the established criteria.
Sustainability and diversity statement. Include a brief overview of goals and initiatives.
Ethics and anti-bribery (as above).

Pare can support with the development and delivery of a procurement policy to ensure a consistent buying approach across the business.