It’s no secret that procurement and supply chain management are integral components of a successful business.
But procurement is a complicated process that requires specific goals to succeed. Luckily, the SMART framework will ensure the company’s time and resources are used efficiently.
In this post, we’ll cover various examples of SMART goals for procurement. Understanding how to establish these goals can provide you with the right tools for success.
What is a SMART Goal?
The SMART (Specific, Measurable, Attainable, Relevant, Time-based) system will enable you to set practical goals for procurement.
Need more clarification? Here is a deeper dive into each SMART letter:
Specific
For businesses of every size, having specific goals for procurement can streamline the process. Taking the time to define your targets will make it easier to determine whether an item meets your needs—and if it doesn’t, you’ll know that further investigation is required.
Measurable
Quantifiable goals require careful thought and clear-cut criteria; they should be part of your overall strategy for success. As you define each goal, make sure it has an associated benchmark. With this level of detail, you will have visibility into the progress or performance results at any given time.
Attainable
We all have aspirations, but setting realistic expectations will allow you to reach those dreams. Rather than aiming for unattainable heights, focus on smaller steps; that may involve focusing on one goal at a time rather than juggling several projects simultaneously.
Relevant
Your goals should center around your values to stay inspired in difficult times. Once you better understand what drives you, use it as a foundation for goal setting. You’ll be able to create meaningful goals that propel you forward.
Time-Based
A stringent timeline is key to staying laser-focused on your ambitions. In this way, you can steadily progress toward your objectives. And remember, success doesn’t happen overnight; it is developed after long hard work and persistence.
13 Examples of SMART Goals for Procurement
Below are 13 examples of SMART goals for successful procurement:
1. Foster Accurate Forecasting
“I’ll implement a process of collecting and analyzing data to ensure the company always has the right number and type of products. I want to foster an accurate forecasting process with the help of our procurement team within 5 months.”
Specific: This goal is explicit as it entails creating a process for analyzing data to forecast accurately.
Measurable: It is possible to measure the accuracy of forecasted products.
Attainable: This SMART goal is achievable with the help of a procurement team.
Relevant: Accurate forecasting is essential for businesses to ensure they have enough products.
Time-based: The statement should be accomplished within 5 months.
2. Reduce Material Waste
“In the following three months, I’ll reduce material waste in our procurement process by 15%. I’ll monitor our waste levels and make any necessary changes to ensure a reduction in material waste occurs.”
Specific: The goal is clearly stated, outlining the objective and deadline.
Measurable: Monitoring waste levels will enable the company to track progress.
Attainable: This is possible by making necessary changes to reduce waste.
Relevant: Reducing material waste will help the company improve its procurement process.
Time-based: There is a three-month time frame for decreasing waste.
3. Optimize Supplier Relationships
“I want to optimize the relationships between our organization and suppliers to ensure it is mutually beneficial. I’ll set up regular check-ins with each supplier and ensure all agreements are clear within 6 months.”
Specific: This SMART goal outlines what needs to be done (set up regular check-ins and ensure all agreements are clear) and when it should be completed (within 6 months).
Measurable: You can count the number of check-ins and agreements clarified.
Attainable: Strengthening supplier relationships is definitely feasible.
Relevant: Ensuring a mutually beneficial supplier relationship will help secure long-term investments.
Time-based: The goal is expected to be completed in half a year.
4. Improve Quality Standards
“I will identify ways to create and enforce higher quality standards for purchasing decisions from suppliers in 5 months. I hope to use customer feedback, supplier evaluations, and other data to measure the quality of products and services purchased.”
Specific: You have identified steps to take—using customer feedback, supplier evaluations, and data.
Measurable: You can determine the quality of products and services purchased.
Attainable: Assuming you have the resources and data available, this is a reasonable goal.
Relevant: Improving quality standards is directly related to procurement.
Time-based: You should anticipate goal achievement after 5 months.
5. Reduce Costs for Materials
“I aim to reduce costs for materials sourced by 20% over the 8 months ahead. To accomplish this, I’ll establish relationships with new suppliers, negotiate better deals with existing ones, and find more efficient ways to buy materials.”
Specific: The procurement professional aims to reduce materials costs by 20%.
Measurable: You could track the cost of materials sourced over time.
Attainable: This is doable if appropriate steps are taken to introduce new suppliers and negotiate better deals with existing ones.
Relevant: This goal is relevant to procurement professionals because it directly impacts their organization’s bottom line.
Time-based: The SMART statement has an 8-month timeline to be met.
6. Streamline Processes
“I’ll review the current procurement processes and make any necessary changes to streamline them within three months. I’ll look for ways to eliminate wasted time, cost, and effort in order to make the process more efficient.”
Specific: The goal outlines the objective, what will be done to achieve it, and the timeline.
Measurable: You could measure how much time, cost, and effort is saved by streamlining the process.
Attainable: This goal is possible since it’s realistic to review and make any necessary process changes within three months.
Relevant: This is pertinent to improving efficiency in the procurement process.
Time-based: There is a three-month window for accomplishing success.
7. Develop Sustainable Practices
“I aim to reduce the environmental impact of our procurement processes for 12 months. I want to maximize recycling efforts, decrease plastic consumption, and switch from traditional fuel sources to renewable energy sources to better protect our planet.”
Specific: The individual has a clear idea of what they want to do and is looking at reducing the environmental impact of procurement processes.
Measurable: Monitor the number of recyclable materials, plastic consumption, and renewable energy sources.
Attainable: This certain goal is feasible with the right resources and commitment.
Relevant: The person wants to positively and sustainably impact our planet.
Time-based: The goal should be met in 12 months.
8. Leverage Technology
“I’ll strive to use technology to make procurement processes more efficient after 7 months. That includes researching and implementing software for seamless ordering, so our procurement team can complete orders and invoices with minimal effort.”
Specific: The goal is to use technology to make procurement processes more efficient.
Measurable: Evaluate progress by researching and implementing software to make ordering more efficient.
Attainable: You have identified a reasonable timeline to research and implement the necessary technology.
Relevant: This is relevant to procurement, as it can facilitate ordering processes.
Time-based: The statement should be completed after 7 months.
9. Enhance Risk Mitigation
“To reduce potential losses, I will review our risk management protocols and identify areas for improvement in 8 months. I want to ensure we mitigate potential risks associated with our procurement process.”
Specific: The SMART goal is to improve the risk management protocols.
Measurable: Ensure you review protocols and identify areas for improvement in 8 months.
Attainable: This allows adequate time to review risk management protocols and make necessary changes.
Relevant: This goal is appropriate to ensure potential risks associated with procurement are minimized.
Time-based: There is an 8-month deadline to attain success.
10. Shorten Purchasing Cycle Time
“My aim is to reduce the time it takes to process a purchase order from four to two days. I plan to implement automated processes and streamline communication between purchasing, planning, and production teams for 7 months.”
Specific: You want to minimize the time it takes to process a purchase order.
Measurable: Check if you’re on track to reduce purchasing time from four to two days.
Attainable: Automated processes and streamlined communication can help reduce the purchase order process time.
Relevant: This is relevant to the purchasing team because it will improve efficiency.
Time-based: The goal has a timeline of 7 months for completion.
11. Automate Approvals and Reimbursements
“I’ll automate approvals and reimbursements for all purchases within three months. I hope to use technology that allows for faster and more efficient processing of payments, reducing the amount of time spent on paperwork.”
Specific: The goal is explicit because it specifies automating approvals and reimbursements.
Measurable: Measure the amount of time saved on paperwork.
Attainable: Automating approvals and reimbursements is a common practice today.
Relevant: The goal relates to improving the speed and efficiency of payments.
Time-based: Goal completion is expected within three months.
12. Ensure Inventory Accuracy
“Within 6 months, I’ll audit our inventory and systems to ensure accurate data. I want to promote better visibility into each item’s inventory levels and track our suppliers more closely.”
Specific: The desired outcome is well-defined, specifying what needs to be done and when.
Measurable: We can audit the data to verify accuracy and measure the improvements.
Attainable: This is doable by working with inventory teams to develop better tracking systems and processes.
Relevant: This relates to procurement because it ensures the organization has accurate data on its inventory.
Time-based: The goal is time-based, with a 6-month timeline for completion.
13. Implement Strategic Sourcing Plan
“I want to develop and implement a strategic sourcing plan that maximizes cost savings on procurement activities. For the next four months, I want to take a proactive approach and ensure that the organization gets the most value for its money.”
Specific: The goal clearly states that you want to develop and implement a strategic sourcing plan.
Measurable: You can check how much money the organization saves through the plan.
Attainable: It’s possible to develop and implement a strategic sourcing plan.
Relevant: Strategic sourcing plans save money and add value to the organization.
Time-based: Four months are needed to reach your ideal target.
Final Thoughts
The procurement teams can use SMART goals to foster clarity and efficiency in their operations. They can achieve their desired outcomes by setting goals that meet the SMART criteria.
Make sure you carefully consider your goals before committing to the SMART framework and adjust accordingly if needed.
As with any goal-setting strategy, try to chunk the process into manageable pieces. It’ll be easier to celebrate each success along the way.
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