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How to Build a Procurement Process That Works: Your 7-Step Checklist
Ah, procurement. Something that large companies have whole departments for. But finance teams in mid-sized businesses sometimes end up doing by accident. Whether you realize it or not, you might already be running procurement for your company. Just without the fancy job title, the structure, or the luxury of spare time. But how do you know if you’re secretly moonlighting as the (Unofficial) Procurement Team? We’ve put together this helpful guide to 10 signs to watch out for - and some tips for what you can do about it. Brace yourself.
Step 1: Stop doing approvals over email – automate to eliminate bottlenecks
Sending a quick “Hey, can I buy this?” email is easy. The problem? So is losing that message in an avalanche of unread messages. Verbal or chat-based approvals mean zero traceability, accountability, or control. And when an audit rolls around, you’ll be wishing those instant messages came with a paper trail.
How to fix it:
Use an automated approval system where requests, justifications, and sign-offs are centralised and documented. Tools that streamline approvals in real-time can reduce turnaround times from days to hours and cut unauthorised spending.
Choose platforms that integrate with your existing comms stack (like Slack or Teams) but still log everything centrally. Set SLAs for turnaround times e.g., approvals under £1,000 should be signed off within 24 hours, to things keep moving.
Step 2: Centralise supplier data (no more mystery invoices and better visibility)
Your supplier database shouldn’t look like a treasure map, where X marks “Who on earth ordered this?” But when supplier information is scattered across email threads, personal spreadsheets, and filing cabinets, you’re basically inviting duplicate orders, missed payments, and surprise costs.
How to fix it:
Use a single, centralised database where all supplier contracts, terms, and contact details live. A structured system means finance knows what’s due, procurement knows what’s ordered, and suppliers don’t have to chase five different departments for payment.
Segment your suppliers by category, risk level, or strategic importance — and start applying SRM (Supplier Relationship Management) principles. It’s not just about keeping track; it’s about building stronger partnerships and getting better value.
Step 3: Standardise purchase approvals so you don’t get stuck in the weeds
If your procurement approvals involve more steps than a NASA launch, you’re doing it wrong. When every department has a different process, purchases either grind to a halt or slip through the cracks with no oversight. Neither is great for your bottom line.
How to fix it:
Implement a clear, standardised approval process based on spend thresholds. Small purchases should move fast, while bigger ones get additional oversight. Less red tape for routine buys = fewer bottlenecks and faster decisions.
Build the logic into your system so, for example, anything over £10k auto-triggers a multi-department review. Want to go one better? Create a simple visual flowchart so no one’s guessing how things get signed off.
Step 4: Use an actual contract management system (no more auto-renewal nightmares)
Ever found out you’re still paying for a vendor you stopped using six months ago? That’s what happens when contracts aren’t tracked. Auto-renewals and forgotten deadlines mean money wasted on unnecessary services. Worse, expired contracts can land you in compliance nightmares if you keep ordering under lapsed terms.
How to fix it:
A contract management system keeps track of renewal dates, obligations, and termination periods, so you’re not relying on someone’s inbox for reminders. Set alerts 30/60/90 days before contract deadlines and assign ownership of each contract to a named stakeholder. You’ll cut unnecessary vendor spend and can even use the visibility to consolidate contracts and negotiate better rates.
Step 5: Integrate procurement with finance workflows to simplify reconciliation
Finance and procurement should be besties, not distant cousins who only talk when something goes wrong in the family. When procurement and finance systems don’t sync, you get mismatched invoices, painful month-end reconciliations, and a whole lot of “Wait, what?” moments.
How to fix it:
Integrate procurement tools with finance software so that every order is linked to a budget, a supplier, and an approval trail. So finance sees spend before it happens, not when the invoice lands. Make sure your systems speak the same language – mismatched GL codes and supplier names are reconciliation killers. Integration also means more accurate forecasting and better cash flow visibility. Fewer “Surprise!” invoices. More peace of mind.
Step 6: Track spending in real-time to make better decisions
Managing procurement without real-time spend tracking is like driving blindfolded – you might get lucky for a while, but eventually you’re going to crash. Without live data, budget overruns aren’t spotted until it’s too late to fix them.
How to fix it:
Use real-time spend dashboards that provide up-to-the-minute visibility into purchases, committed spend, and vendor performance. Slice the data by category, department, project, or vendor to find out where your money’s actually going. Add in some predictive analytics, and you’ve got a powerful tool for forecasting, trend-spotting, and stopping budget blowouts before they start.
Step 7: Set procurement KPIs that actually matter (not just “did we buy less?”)
Procurement success isn’t about spending less – it’s about spending smarter. Too many businesses track only cost-cutting, ignoring the other factors that determine a healthy procurement strategy.
How to fix it:
Define KPIs that measure actual impact: cost savings, % of spend under contract, supplier performance, maverick (unauthorised) spend, and approval cycle time. Track whether POs are raised before or after invoices arrive: the latter’s a huge red flag. Review these KPIs quarterly with stakeholders so procurement doesn’t just run – it improves.
The bottom line: Get your house in order, and everything else gets easier
Procurement is a business advantage when done right. It’s about fixing the friction points that quietly drain time, money, and sanity.
Automating approvals, centralising data, integrating systems, and tracking the right metrics won’t just tidy up your processes, it’ll give your organisation the visibility and confidence to make smarter, faster decisions. No more panic at month-end. No more awkward vendor calls. No more ghost contracts or rogue spend.
Get procurement working the way it should, and you unlock something better than cost savings: clarity. And in a world where every penny and every decision counts, that’s not just nice to have - it’s essential.
Ready to take charge and streamline your procurement process? Download our Finance-First Procurement Guide and turn procurement into a strategic advantage instead of a liability.
