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Article

Another key decision with a lasting impact

Another key decision with a lasting impact

Commodity codes have emerged as a foundational element of high-performance procurement operations. The improved use of technology for supplier management, spend analytics, strategic sourcing, performance metrics and inventory management depends on an effective coding model that aligns with the requirements of public sector activities. Thus, choosing a commodity code structure is a decision with lasting agency impact.
  • Written by Jean Clark
  • 26th February 2015
In our daily roles, procurement officers discuss and interpret procurement policies and procedures with clients and suppliers. These difficult discussions involve analysis of specific written policies and procedures. We officers then determine the best approach based on the organization’s risk tolerance, culture, transparency and competitive fairness. Each of these considerations affects procurement strategies. Commodity codes have emerged as a foundational element of high-performance procurement operations. The improved use of technology for supplier management, spend analytics,...

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