Setting the Course for Purchasing System Success in 2024

As we usher in the new year, government contractors are presented with the opportunity to reflect on their existing practices, adapt to the changing landscape, and set ambitious goals for the future.  2024 could very well be a transformative year for some government contractors who may be one award away from triggering a purchasing system review. 

Prior to reaching the $50 million threshold, the ACO/DCMA should already be familiar with your purchasing system during a review of your consent packages submitted for approval prior to issuing a subcontract pursuant to FAR 52.244-2.  Contractors should position themselves now for ways in which they can improve their purchasing processes in order to stay (or become) compliant and efficient.  Below are ways in which you can enhance and improve your current procurement operation as you enter into this new year:

1. Conduct a Comprehensive Internal Audit

• Analyze your current workflows, systems, and processes.
• Identify areas of bottlenecks, redundancies, and inefficiencies.
• Assess the performance of each department and team.

2. Collect Feedback from your Buyers and Subcontract Administrators

• Gather input from all levels of employees.
• Seek suggestions for improvement and encourage open dialogue.
• Consider sending out a survey or creating a focus group.

3. Technology Integration

• Assess the use of technology in your procurement operations.
• Explore automation and software solutions to streamline tasks.
• Consider adopting cloud-based systems for scalability.

4. Employee Training and Development

• Invest in training programs to enhance employee skills.
• Ensure your employees are up-to-date with industry trends.
• Foster and support a culture of continuous learning.

5. Customer (Internal and External) Feedback and Satisfaction

• Collect and analyze customer feedback.
• Identify areas for improvement within the procurement process.
• Focus on enhancing the overall internal and external customer experience.

6. Supply Chain Optimization

• Evaluate the efficiency of your supply chain.
• Consider alternative suppliers or logistics partners.
• Optimize inventory management and negotiation with suppliers for better terms.

7. Performance Metrics and Key Performance Indicators (KPIs)

• Define and track key performance indicators (KPIs).
• Establish clear metrics for success and monitor regularly.
• Use data analytics to make informed decisions.

8. Risk Management

• Evaluate potential risks and create a mitigation plan.
• Ensure compliance with regulations and industry standards.
• Develop contingency plans for unexpected events.

Automating the Collection and Analysis of Data

For many contractors, the collection of data is done manually, maintained on an Excel spreadsheet, and consumes a significant amount of time and resources to compile, analyze, and maintain.  SpendLogic automates the collection and analysis of much of this data which is displayed on a manager’s dashboard.  The data is captured on a 6-month rolling basis and is displayed in real time.

• Do you want to know how may “customer directed” source justifications your buyers have issued?  Look on the dashboard.
• Do you want to know what documentation your procurement personnel struggle with the most? Look on the dashboard.
• Do you want to know the total number of price analyses your buyers have written?  Look on the dashboard.
• Do you want to know the average score of procurement personnel’s procurement files?  Yup – look on the dashboard.

As government contractors embark on the journey of 2024, SpendLogic can help prioritize compliance and efficiency.  By setting and achieving these resolutions, and integrating SpendLogic into your procurement process, contractors can position themselves as reliable and forward-thinking partners, ready to meet the evolving needs of its customers – both external and internal. 

To learn more, schedule an absolutely free, no-hassle, 15-minute demonstration of SpendLogic.