You're a department head with a great project idea that's going to save your company a ton of money. You've got the vision, the budget (sort of), and the enthusiasm. You shoot off a request to procurement, expecting things to move at the speed of business. But then…
Days turn into weeks. Weeks (sometimes) turn into months. Radio silence, endless follow-ups, and suddenly your project is gathering dust while competitors zoom past. Frustration boils over: stakeholders are fuming, deadlines are slipping, and everyone's pointing fingers at the procurement team.
Procurement delays are the stuff of corporate nightmares, and have not helped the function’s reputation in both the government and private sectors.
Below, we discuss the cost of delay, some of the reasons things can take so long, and ways to increase speed-to-source (including using a GPO).
The Real Cost of Slow Procurement
Slow procurement costs your business money, time, and effort.
Take margins, for instance. Businesses operate on razor-thin, 2-5% edges in many industries. A single delay can snowball: a late supplier approval means higher costs from expired quotes, expedited shipping or overtime work. Rework from vague requests can mean extra hours and resources down the drain.
Then there are (harder to quantify) opportunity costs. While your team waits for that critical vendor contract, competitors are launching products, grabbing market share, and leaving you in the dust.
Stakeholders feel this frustration. Projects stall, morale tanks, and suddenly procurement's the villain in every boardroom story. But before we grab the pitchforks, let's understand why slowness isn't always a bad thing.
The Legit Reasons Procurement Teams Are Slow
There is a solid case for being methodical, and it boils down to one word: risk. In a litigious, regulated environment, rushing can lead to disasters bigger than any delay.
First off, due diligence is non-negotiable. Teams have to vet suppliers for financial stability, compliance with standards or laws, and overall reliability. Skip this, and you might end up with a vendor who ghosts you mid-project, slaps you with legal headaches, or embroils you in a supply chain scandal.
Then there's regulatory compliance and contractual safeguards. Government procurement and particular sectors are understandably more heavily regulated than others. Attempting to rush a contract is a recipe for disputes, hidden fees, or worse. Procurement pros know that taking a little extra care protects the company long-term, even if it means extra rounds of approvals.
Internal factors play a role, too. Misaligned stakeholders with conflicting priorities lead to back-and-forth that slows everything. Late involvement of procurement means starting from scratch, causing rework. Perhaps there is a manager somewhere who is bottle-necking everything. And external wildcards like market volatility, supplier shortages, or global events can throw time-consuming curveballs.
Here's the good news: you don't have to choose between the tortoise and the hare. There are proven ways to inject some speed into the process without cutting corners.
7 Practical Ways to Speed Up Procurement
Let's get to solutions. Here are some actionable ways to accelerate sourcing without crashing.
Digitize
Relying on emails, spreadsheets, and siloed systems today is like using a flip phone in the smartphone era. Automate approvals, centralize data, and use procurement software for real-time visibility. Tools like these will eliminate delays from lost data, potentially shaving weeks off timelines.
Encourage Earlier Procurement Involvement
Loop in procurement at or even before the project's kick-off to align on scopes, priorities, and timelines. This prevents rework from vague requests or late discoveries. Delays aside, here’s the rule of thumb: the later you loop in procurement, the less they can do to help.
Streamline Approvals and Standardize Processes
Approval chains can feel like a game of hot potato. Set clear timelines, reduce sign-off layers where possible, use smart systems to automate requests and reminders, and standardize templates for requisitions and contracts.
Boost Stakeholder Communication
Combat misaligned priorities with better communication. Educate stakeholders on procurement realities and foster collaboration. Better education will cut down on vague requests and help speed up decisions. Consider investing in a procurement chatbot so stakeholders can get the answers they need, fast.
Leverage Technology for Supplier Management
Build or buy a centralized supplier database to quickly identify and onboard vendors. Automate RFPs, evaluations, and onboarding to skip the slog.
Embrace Agile Procurement
Agile isn't just for software devs anymore. Agile procurement involves breaking processes into sprints, iterating quickly, and adapting to changes on the fly. It promotes flexibility, early feedback, and faster iterations, perfect for keeping things moving.
Source Smarter
Look local where possible to cut shipping delays (and support sustainability). Leverage existing contracts to bypass full sourcing marathons. And monitor market factors proactively to anticipate disruptions.
The Ultimate Speed Hack: Join a GPO
Implementing even a few of the strategies above will see your time-to-source plummet. But if you really want to supercharge your procurement speed, consider partnering with a group purchasing organization (GPO) like Una.
Here's how Una drastically improves speed-to-source
- Instead of starting from scratch with every request, you tap into a portfolio of 2,500+ pre-vetted, ready-to-go contracts with the nation’s leading suppliers.
- Our "speed-to-savings" approach connects you to suppliers aligned with your goals, bypassing lengthy RFPs and negotiations.
- It’s streamlined, compliant, and will save you an average of 18-22% per year on various goods and services.
As a true sourcing accelerator, our goal is to offer turn-key solutions that empower members to achieve category quick wins and then move on to the long-term strategies that make their business more profitable.
Una‘s pre-negotiated contracts are designed to save you more money, time, and effort. Leveraging the incredible power of volume purchasing is the ultimate way to get on the fast track to savings, granting instant access to deep discounts that would otherwise take years of business growth and negotiation to achieve.
In the end, procurement doesn't have to be the office sloth. With the right tweaks, and maybe a little help from pros like Una, you can keep the diligence without the delays.
Learn more about Una membership and the benefits of partnering with a group purchasing organization to accelerate savings in procurement here.
