Build procurement processes & a user experience which does the policing for you

𝗜 𝗻𝗲𝘃𝗲𝗿 𝘄𝗮𝗻𝘁𝗲𝗱 𝘁𝗼 𝗯𝗲 𝗽𝗮𝗿𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗽𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗽𝗼𝗹𝗶𝗰𝗲

but early in my career i found myself reviewing sourcing records, purchasing requisitions and transaction details on:

▪️their policy compliance with sourcing guidelines

▪️the use of non-approved or blocked suppliers

▪️the perpetual renewal of contracts

▪️4-eye principals and DoA adherence

▪️the reason for retrospective PO's

but i learned a lot from it in a short time

It was all tedious work but humbling and eye-opening to say the least.

It helped me build a broader perspective of the demand & challenges users are facing every day.

Whilst there is always deliberate offenders, a majority of cases were non-intentional and resulting from:

▪️a complex procurement policy which was hard to follow

▪️limited trainings and inconsistent training material

▪️a procurement desk battling with a flood of inquiries

▪️a neolithic, often confusing contract & requisitioning system

I still believe that no procurement organisation wants to spend their time with policing & law enforcement of compliance, right?

Without debating about who is best entitled to do so, it still is necessary given the nature of procurement activities & risks.

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Build process and user experiences for compliance

Instead of policing compliance requirements, a better option is to create procurement user experiences and processes designed to incorporate compliance from start - or at least limiting possibilities to get away with it.

Find here 7 principles to consider when testing your procurement user experience and processes on their ability to do the policing job for you:

1. 𝗟𝗲𝘀𝘀 𝗶𝘀 𝗺𝗼𝗿𝗲: stress-test policy on requirements and needs, thresholds for specific sourcing and supplier qualification requirements and the viability to implement all of these demands. Review language on clarity, use cases for different roles and the reasoning provided behind each major compliance requirement. Test any changes ahead with a user sounding board.

2. 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗲 𝗰𝗵𝗲𝗰𝗸𝘀 & 𝗰𝗼𝗻𝘁𝗿𝗼𝗹𝘀 build an intuitive, decluttered user interface with integrated data flows, tracking of compliance relevant data points and changes so that auditors can check easily and provide alerts & warnings to users to correct entered information or provide more information e.g. justification reasons for being out of policy.

3. 𝗦𝗶𝗴𝗻𝗽𝗼𝘀𝘁 𝗮𝗻𝗱 𝗴𝘂𝗶𝗱𝗲: embed visual cues and a logical sequence of process steps in your systems helping users to complete all necessary information and explaining compliance specific needs through tooltip and help with clear expectations of what information is needed.

4. 𝗟𝗲𝘁 𝘁𝗵𝗲 𝗺𝗮𝗰𝗵𝗶𝗻𝗲 𝗯𝗲 𝘁𝗵𝗲 𝗱𝗲𝘁𝗲𝗰𝘁𝗶𝘃𝗲: enable Automation & AI-driven solutions determining routing & validation of potential non-compliant transactions on potential fraud e.g. bank account changes

5. 𝗘𝗻𝗮𝗯𝗹𝗲 𝘀𝗲𝗹𝗳-𝗰𝗵𝗲𝗰𝗸 𝗼𝗻 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲: provide upfront checklist for casual users, a portal to access FAQ's, preferred & contracted supplier lists and reports with their own compliance history.

6. 𝗘𝗻𝗴𝗮𝗴𝗲 & 𝘁𝗿𝗮𝗶𝗻: integrate compliance into your business partnering model, reviewing non-compliances and actions needed including scheduled regular trainings and Q&A sessions

7. 𝗟𝗲𝗮𝗿𝗻 & 𝗔𝗰𝘁: close compliance loops by eliminating root causes and testing on efficacy of measures ie develop preferred suppliers, improved training material, system guidance etc. Ensure that for major non-compliances, consequence management processes are in place and are followed.

❓What else could help to create compliance without policing

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Let me know your thoughts by leaving a comment here on this post

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