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Evaluating Purchasing Performance with Organizational Redesign

Quartz Editorial Team

Quartz Editorial Team

Improving Purchasing Performance and Effectiveness through Organizational Re-Design

In a recent Quart Network presentation, Tolga Tuksal discussed ways to improve purchasing performance and effectiveness through organizational redesign.

Tuksal helps organizations evaluate and improve purchasing performance and effectiveness. He is Director of Strategic Global Sourcing, Supply Chain at Dayco where he leads global corporate purchasing and supply functions. 

Having a centralized purchase structure can help achieve greater efficiency. The right tools, strategic initiatives, and organizational structure leads to better purchasing professionals.

Align Aspirations with Organizational Structure

When evaluating purchasing performance, it’s important to focus on areas of improvement and put a plan into place. To make this transformation, “You must take a picture snapshot of your current state, you must assess your strengths and weaknesses, and you must define the future state.”

Tuksal reviews different organizational structure types including:

  • Organizational Structure Types
  • Organizational Structure Gap Analysis and Selection
  • Centralized Purchasing Structure and Performance Management Tool

Identify Flaws in Purchasing Performance

He encourages businesses to take a step back and analyze any gaps or weaknesses in their own structure and ask the following:

  • What will the future state look like?
  • What is going to be different two, three years from now?

Tuksal takes a strategic look at some of the tools available on the market to help you get ahead.

It helps to focus on the four main areas:

  1. Results and bottom line impact
  2. Performance Management
  3. Process
  4. People

Establish and Reach Your Long-Term Goals

Begin your journey now and set your goal to arrive in the future state you envision.

“You’re not going to get from current state to future state overnight, right?” Tuksal said.

The best way to get to the future state is with a centralized organization. He recommends taking advantage of purchasing under one umbrella with benefits such as a single point of contact with ties to leadership.

Watch the presentation, Improving Purchasing Performance and Effectiveness through Organizational Re-Design, for more strategies.