What Is Lean Procurement?

Lean Procurement applies lean principles to the procurement process for supplies

Lean Procurement® is the trademarked strategy that can help you dramatically reduce what you spend in time and money on the large categories of products such as the wide range of low value high velocity business supplies.

Lean means the elimination of waste and that is exactly what the Lean Procurement strategy does to the procurement process. It utilizes innovative web technology and web solutions to streamline your procurement process, reduce spending and provide measurable accountability. And common sense solutions.

The Lean Procurement strategy uses a Lean team approach to optimize the total end-to-end procurement process; eliminating wasted activities and making ordering efficient. Multiple departments feel the relief.

Supports Supply Chain Optimization

The Lean Procurement® strategy  supports your journey to Supply Chain Optimization by implementing a collaborative solution between your procurement team and your suppliers.

Trademarked since 2005, the strategy optimizes your procurement process by consolidating your suppliers base, streamlining the procurement process and elevating accountability of all buyers, online. Multiple departments collaborate and share the same objectives.

Your procurement team will be guided to focus on helping management optimize their supply chain.

Lean Procurement will reduce spending on supplies by 25%

The Lean Procurement strategy can reduce your spending on business supplies by 25% or more. It focuses on two things: a streamlined procurement process with innovative online spending budgets for each buyer and a cost effective product solution. Our innovative online spending budget is called the Silent Supervisor®.

Product specialists from the supplier will help uncover cost effective solutions.

Your procurement team will collaborate

Your Lean Procurement team will understand the necessity of streamlining the procurement process by collaborating with other departments and expert suppliers. Innovative suppliers must have expertise in Lean principles.

Your team will understand the value of consolidating the supplier base with the experts in their fields. Understanding how to openly collaborate with suppliers for solutions and how to share data and measurable statistics becomes a common strategy.

Multiple departments working together to achieve management’s objective becomes the team’s objective.

Lean Procurement provides controls and accountability

Online live performance reports help keep buyers accountable and under budget. Scheduled executive business review meetings keep the team on track.

Your procurement employees will be trained to be Lean Procurement specialists.  The team will work within your management guidelines to create and implement a new and streamlined process that will not only reduce spending and save time but also hold the participants responsible with measurable statistics.

Implementation of a new future state

Your Lean Procurement team will be trained to understand Lean principles, Value Stream Mapping and how to implement a new improved future procurement process. New ecommerce solutions with online performance reports save time are vital.

Outsourcing to suppliers with expertise offers expanded value.

Lean Procurement can save hundreds of wasted hours

The problem with procurement of for example,  business supplies is that simply too much time is spent on this low value high velocity category of products. And there is very little control. In many cases, there are too many suppliers, too many invoices, little or no spending controls and very little accountability.

Every year, companies waste thousands of man-hours with the inefficient procurement of thousands of these low value, yet necessary business supplies. However, it doesn’t have to be that way. Lean Procurement significantly streamlines the process.

Your procurement team will have more time to spend on more valuable activities.

The 80/20 rule

The 80/20 principle applies to this group. 80% of procurement time is spent on 20% of low value procurement. More time should be spent on more valuable procurement such as:  raw materials, transportation etc. Too much time is wasted on ordering low value supplies, receiving multiple small deliveries and paying too many small invoices.

Lean Procurement helps many companies

The Lean Procurement strategy has helped hundreds of organizations unlock the power of Lean Manufacturing principles in the procurement process for the category of business supplies. Whether you are a large multi-facility or small business, the Lean Procurement strategy can help you streamline the ordering process, reduce what you spend and achieve measurable accountability.

Most suppliers want you to buy more. Lean Procurement helps you spend less.