The benefits of pre-procurement pipeline management
Introduces process control mechanisms
Pipeline management introduces control mechanisms to ensure you have completed the resource forecasting needed for procurements. It also makes sure those who want to procure goods or services submit a business case which sets out the reasons for the request. You can then use the business case for procurement prioritisation and resource allocation purposes.
Aligns procurement with business goals and objectives
Your strategic objectives should drive your purchasing decisions. For example, if you’re providing low-cost services, you won’t want to purchase high-end products. The pipeline process will ensure only projects that meet your company’s goals and objectives receive approval and move forward.
Provides transparency of the pipeline
Pipeline management provides visibility for business departments on where their projects are in the procurement queue. They will be advised of the business priorities and where their procurement fits in with them. If a project is authorised, designated project approvers will receive alerts as the project moves through each stage of approval.
Defines project outcomes and value expected
Project outcomes will be defined using your strategic priorities, ensuring projects will deliver results that support your business objectives. Value expected can be harder to define, as it is not always a measurable financial gain, and can be environmental or social value. Your pipeline management system will ask a series of questions to help you identify the non-financial value expected. The answers will then generate measurements, for example, KPIs and service specifications, to be included in the related tender or contract.
