• Procurement Network

Is HR riskier than Procurement?

Updated: May 10

Teams are everything in any organization. If we were to analyze the importance of people versus systems, tools, mechanisms in the organization, people would come first. More important than anything else. It is people versus everything else. Because people are key, teams are value.

People selection, management and growth is normally organized and structured by HR departments. This is a very important role and it can rapidly impact the organization in different ways.

When it comes to Procurement, another important role in any organization, it also has elements of dealing with people. However, those are mostly requesters, external suppliers and third parties. Procurement does not manage people directly and does not bear the responsibility for personal development and growth.

Knowing both roles are important, let us try to understand which role is riskier. Normally, risk management involves evaluation of a price of a mistake, so...

Is price of HR mistake high? You bet! Wrong people, even one, can negatively impact the image of your organization. [Although sometimes we are surprised to see some ... hmm ... not very right people working in some organizations for years.]

How about the price of Procurement mistake? Imagine wrong order, going to a wrong supplier, with wrong due date, wrong quantity or wrong delivery place/time. Now imagine the products you buy are medicines or life-saving tools. Scary, right?

While HR can have a probation period and simply say goodbye to an employee if not satisfied, organizing another delivery of the right product to the right place after one failure will be time-consuming and can cost lives, literally.

So, which role is riskier?

#hr #procurementdepartment #humanresources #procurementrole #procurementrisks