No News is Good News: Our Guide to Navigating Audit Season

Procurement professionals hold a lot of responsibility within their organisation and know that “auditability” is more than just a buzzword; it's a vital practice for ensuring that your organisation remains compliant, ethical, and out of the news for all the wrong reasons.

Facing the wrath of the dreaded “Auditor” may sound like a nightmare scenario, but the reality is that procurement teams are responsible and must work diligently to avoid your CFO bursting into your office with a newspaper in hand covered in your organisation’s name.

The stuff of nightmares... The Auditor.

When it comes to the complexities of procurement, it can be difficult to know where to start to ensure your organisation stays out of the spotlight for the wrong reasons. We have put together three key strategies for you to mitigate procurement risk before your next audit, so you come out the other side smiling.

Think about trying to follow a recipe written in a foreign language. The steps might be clear to someone fluent in that language, but for the rest of us, it’s a recipe for disaster. Similarly, when procurement policies and processes are communicated in overly complex jargon, it’s like asking non-procurement staff to navigate a maze blindfolded.

To simplify compliance, consider how IKEA presents its assembly instructions. With its universal pictograms and straightforward visuals, anyone can follow along without needing a translator. Similarly, your procurement processes should be presented in an easily digestible format. This could be through visual guides, infographics, or simplified process flows.

Tools like VendorPanel’s “Guide” can transform complicated procedures into user-friendly workflows. Instead of wading through dense policy documents, staff can answer a series of intuitive questions that lead them to the next steps in a compliant procurement event. This approach ensures that even those who aren’t procurement experts can easily follow the necessary steps without adding to your team’s workload, all while maintaining compliance.

History is full of cautionary tales of once-mighty entities brought down by their own self-confidence and complacency. Think of them as the proverbial “Icarus” of the corporate world—soaring high until their unguarded wings melted in the sun. Lance Armstrong, the Lehman Brothers, and even the Titanic are prime examples of industry giants who overestimated their invincibility and, in the end, paid dearly for it.

Consider any one of the dozens of stories where a procurement staff member or decentralised buyer at a council exploited weaknesses in outdated processes or systems, resulting in a substantial embezzlement scandal. These cases serve as a stark reminder that even seemingly minor oversights can have significant repercussions.

Instead of waiting for a wake-up call, proactively review and update your procurement policies. Regularly benchmark against industry standards and learn from the mistakes of others in a similar industry.

A robust Source-to-Contract platform, like VendorPanel, can serve as your digital watchdog, capturing all procurement activities in one transparent, easily auditable system.

Imagine trying to draft a detailed architectural plan using nothing but a crayon and a sheet of notebook paper. While it’s a creative exercise, it’s hardly the right tool for precision work. Similarly, using outdated or inappropriate tools for procurement can result in inefficiencies and errors that can jeopardise compliance and transparency.

Just as you wouldn’t use an all-purpose hammer for every job, you shouldn’t rely on generic software or manual processes for complex procurement tasks. For instance, managing procurement through spreadsheets, Sharepoint or basic email systems is like using MS Paint to do your graphic design.

However, a specialised procurement system, such as VendorPanel, provides the right tools for the job. It integrates various functions like supplier management, policy guidance, and contract oversight into a cohesive platform. Think of it as upgrading from a basic toolkit to a state-of-the-art machine designed specifically for the job at hand.

With features like automated workflows, flexible user roles, and advanced analytics, VendorPanel ensures that your procurement and contract management processes are both efficient and compliant.

Avoiding the procurement pitfalls that lead to your organisation being splashed across the news involves more than just adhering to policies. It requires simplifying communication, learning from the experiences of others, and utilising the right technology.

For those looking to navigate the complexities of procurement with confidence, get in touch with VendorPanel. We’re here to provide the tools and insights you need to maintain an efficient, compliant and risk-free procurement process and keep your organisation’s name where it belongs—out of the headlines.

This blog was based on a presentation of the same name, shared in August 2024 at the PASA Big Breakfast. To watch the full recording of the presentation, click here.