Why operational procurement matters
Operational procurement is the backbone of every organisation – it’s where strategic decisions are translated into tangible results.
What is planned at the strategic level becomes reality through operational activities: demand forecasting, ordering, supplier communication, monitoring, and invoice control.
In today’s volatile market environment – characterised by material shortages, price fluctuations, and delivery uncertainty – operational procurement is more important than ever.
Organisations that structure, digitalise, and measure their processes effectively secure liquidity, supply reliability, and competitiveness.
Discover how strategic procurement creates the framework for efficient operations in our article Strategic Procurement – Flexible, Resilient, and Sustainable Sourcing.
The core tasks of operational procurement
Modern operational procurement goes far beyond order processing.
It serves as a central interface between suppliers, internal departments, and strategic management.
Typical responsibilities include:
- Determining requirements based on forecasts and production plans
- Obtaining and comparing quotations
- Negotiating prices and delivery terms
- Issuing purchase orders and checking order confirmations
- Monitoring delivery schedules and tracking shipments
- Processing invoices, credit notes, and complaints
- Maintaining data in ERP systems and reporting
When organised efficiently, operational procurement is a solid value driver.
When poorly structured, it can lead to bottlenecks, cost increases, and quality risks.
Demand planning and inventory management
One of the key objectives of operational procurement is balancing availability and capital commitment.
Excessive inventory ties up liquidity – too little stock risks production downtime.
Best practices include:
- ABC/XYZ analysis to prioritise items by value and consumption
- Forecasting models based on historical data and AI-driven predictions
- Automated purchase proposals in ERP systems
- Rolling planning for dynamic adjustment
This allows procurement teams to control demand precisely, minimise costs, and ensure maximum supply reliability.
Supplier communication and quality assurance
Operational buyers are in constant contact with suppliers – they are both communicators and guarantors of quality.
Key success factors:
- Transparent information flow between suppliers, logistics, and production
- Clear escalation procedures for delivery delays
- Systematic supplier evaluation using KPIs (price, quality, delivery reliability)
- Open and partnership-based communication
SJL Management & Consulting supports companies in developing structured, transparent, and scalable procurement processes.
Data, KPIs and reporting in procurement
What can’t be measured can’t be improved.
An effective reporting system provides transparency over costs, delivery times, complaints, and savings.
Essential procurement KPIs:
- Lead time per purchase order
- Supplier on-time delivery rate
- Savings per category
- Inventory turnover ratio
- Maverick buying rate (purchases outside defined processes)
With digital dashboards and KPI systems, these metrics can be tracked in real time.
SJL Management & Consulting integrates practical performance measurement systems that support both operational control and strategic decision-making.
Digital transformation in operational procurement
Digital tools are key to greater efficiency.
Implementing e-procurement systems reduces errors, accelerates processes, and improves transparency.
Examples of digital solutions:
- E-procurement platforms: automated orders and approvals
- Workflow management tools: streamlined steps, fewer media breaks
- Supplier portals: real-time communication and document exchange
- Mobile apps: approvals and order tracking on the go
Organisations that embrace digital procurement typically achieve:
- 25–40% faster lead times
- 15% lower process costs
- Up to 90% fewer errors through automation
SJL Management & Consulting supports companies in selecting, implementing, and integrating these systems – with a strong focus on usability and practical value.
Common challenges in operational procurement
- Manual processes and Excel dependency → risk of errors and lack of transparency
- Missing interfaces between departments → breaks between procurement, accounting, and production
- Insufficient supplier communication → delays, quality issues, additional costs
- Lack of KPIs and analysis → no objective performance measurement
SJL Management & Consulting’s solutions include:
- Process analysis and standardisation
- Implementation of modern tools (e.g. SAP Ariba, Jaggaer, Coupa)
- Training and coaching for procurement teams
- KPI-based performance management
For periods of transition or capacity shortage, Interim Management in Procurement offers flexible, results-driven leadership on demand.
Operational procurement in transition – people and technology in balance
Despite increasing digitalisation, people remain the key success factor.
Experienced buyers combine analytical thinking, negotiation skills, and teamwork.
A strong procurement function requires:
- Technical and methodological expertise
- Understanding of markets and suppliers
- Communication and assertiveness
SJL Management & Consulting strengthens these competencies through hands-on training, coaching, and clear process ownership – ensuring teams work efficiently and stay motivated.
Best practice example
A machinery manufacturer was struggling with delayed deliveries and high process complexity.
Following an SJL Management & Consulting process analysis, a digital procurement system was introduced, supplier evaluations were implemented, and approval workflows were automated.
Results:
- 30% shorter lead times
- 25% fewer process errors
- Greater transparency and team motivation
Conclusion: Operational procurement as a success factor
Operational procurement is far more than order fulfilment – it’s a core driver of efficiency, transparency, and value creation.
Organisations that digitalise processes, establish KPIs, and empower their teams achieve sustainable advantages in cost, quality, and delivery performance.
SJL Management & Consulting helps companies professionalise their procurement functions – from analysis to implementation.