oboloo Articles

Why Human Resources and Procurement are Essential Components of Business Success

oboloo Articles

Why Human Resources and Procurement are Essential Components of Business Success

Why Human Resources and Procurement are Essential Components of Business Success

In today’s fast-paced business environment, companies need to have a comprehensive strategy for success. One of the most essential components is the effective management of human resources and procurement. These departments are often overlooked as less important, but in reality, they play a critical role in ensuring that businesses run smoothly and efficiently. In this blog post, we will explore the importance of human resources and procurement functions in a business, how they work together for optimal results, their benefits when integrated effectively, and the challenges that come with implementing such strategies. So join us on this journey as we delve into why these two functions are crucial for any organization’s success!

The Role of Human Resources

Human resources are responsible for managing the most valuable asset of any business – its people. The role of human resources is multifaceted, encompassing everything from recruitment and hiring to employee training and development, compensation, benefits administration, and more.

One key responsibility of HR is to ensure compliance with labor laws and regulations. This includes maintaining accurate records of employee hours worked, ensuring that employees receive appropriate breaks and time off as required by law, monitoring workplace safety conditions, among others.

HR departments also play an essential role in fostering a positive work environment that supports employee engagement and retention. They accomplish this by creating policies around diversity and inclusion initiatives like flexible work arrangements or wellness programs.

HR professionals act as liaisons between management teams and employees. They provide guidance on company policies while advocating for fair treatment when necessary. In summary, Human Resources plays a critical role in developing strategies that help companies attract top talent while simultaneously supporting current staff members’ professional growth within the organization.

The Role of Procurement

Procurement is the process of acquiring goods or services from external sources. It plays a critical role in ensuring that a business can operate efficiently and effectively. The procurement function involves everything from identifying suppliers, negotiating contracts, purchasing goods and services, managing inventory levels, and paying vendors.

One of the key responsibilities of procurement is to ensure that the organization gets quality products at competitive prices. Procurement teams must build solid relationships with suppliers to be able to negotiate favorable terms for their organizations. This requires excellent communication skills and an understanding of market trends.

Another important aspect of procurement is risk management. Procurement professionals are responsible for assessing supplier risks such as financial viability or reputation issues before entering into any contract agreements.

Procurement also has a significant impact on a company’s bottom line by managing costs associated with supply chain management which includes transportation, warehousing and storage expenses resulting in better cost control through economies of scale.

The role of procurement is multifaceted but it boils down to driving profitability through effective supply chain management while minimizing risk exposure.

How Human Resources and Procurement Work Together

Human Resources and procurement may seem like two separate departments that have nothing to do with each other. However, the truth is that these two areas of a business are closely intertwined and can work together to achieve overall success.

Human resources is responsible for managing the people within an organization, including hiring, training, and retaining employees. Procurement is responsible for sourcing and purchasing goods and services needed by a company.

When these two departments work together effectively, they can create a seamless process from recruiting new talent to procuring the necessary supplies for them to perform their job duties.

For example, when HR needs new laptops for employees in a certain department, they can work with procurement to ensure that the laptops meet both quality standards as well as budget constraints. This helps avoid any delays or issues in getting employees set up with their necessary equipment.

In addition, HR can provide insight into employee needs such as benefits packages or flexible working arrangements which procurement can then consider when negotiating contracts with vendors.

Human Resources and Procurement need open communication channels so they can share information about staffing plans or future events where more supplies will be required. Together HR & Procurement collaboration leads businesses towards optimal performance!

The Benefits of Integrating Human Resources and Procurement

Integrating human resources and procurement functions can lead to numerous benefits for a business. Firstly, it ensures that the company is acquiring the right talent in line with its strategic goals, as HR has a better understanding of the required skill sets and competencies needed for different positions. Procurement can then source vendors who provide such services at competitive prices.

Secondly, integrating these two functions can help reduce costs associated with employee turnover by ensuring streamlined processes for hiring, onboarding and training new staff members. This allows both departments to work hand-in-hand to ensure employees feel valued from day one.

Thirdly, integration facilitates communication between these two departments leading to transparency in supply chain management which helps avoid any miscommunication or confusion that may arise during contract negotiations or vendor selection process.

An integrated approach also creates opportunities for cross-functional collaboration where HR & Procurement teams can share best practices and ideas leading to innovations in recruiting strategies & supplier performance metrics. Overall this leads to greater efficiency across all areas of the business operationally improving bottom-line profitability.

The Challenges of Implementing a Human Resources and Procurement Strategy

Implementing a human resources and procurement strategy can be a challenging task for businesses. The first challenge is defining the roles of both departments and ensuring that they work together seamlessly. This requires open communication, collaboration, and alignment with the overall business goals.

Another challenge is establishing metrics to assess the success of the integrated strategy. It’s essential to define key performance indicators (KPIs) that align with both departments’ priorities while also measuring their impact on business outcomes.

Additionally, there may be resistance from employees who are resistant to change. They might feel threatened by changes in their job responsibilities or skeptical about how an integrated approach will benefit them personally or professionally.

Moreover, some companies have outdated technology systems that don’t support effective collaboration between HR and procurement teams. Investing in new software can cost time and money initially but will lead to long-term benefits for integration.

It’s crucial to ensure that all stakeholders understand the value of integrating HR and procurement functions fully. Communication should be clear on how this integration will benefit everyone involved – including better talent acquisition processes for HR, more efficient purchasing practices for procurement team members, improved vendor relationships leading towards better deals resulting in cost savings across all facets of business operations!


In today’s fast-paced business environment, companies must adapt to changing market trends, new technologies, and evolving customer preferences. Human resources and procurement are two essential components that can help businesses stay competitive by acquiring the best talent and sourcing goods and services efficiently.

The role of human resources is to manage employee recruitment, training, performance evaluations, benefits administration, compliance with employment laws, and other related functions. Procurement involves selecting vendors or suppliers who provide quality products or services at a reasonable cost while ensuring timely delivery.

By integrating human resources and procurement strategies in their operations, companies can achieve economies of scale through streamlined processes that reduce costs while maintaining high levels of productivity. This approach also leads to improved communication between departments as well as more efficient decision-making processes across different teams.

However, implementing a common strategy for HR and procurement may be challenging due to organizational culture differences or resistance from employees who fear change. It requires strong leadership commitment coupled with an open mindset towards innovation.

In summary, investing in these two critical areas of your business will drive success on many fronts such as increasing profitability margins over time by maximizing efficiency gains derived from staff management practices alongside supply chain optimization efforts conducted under the umbrella term “procurement”. The end result being sustainable growth prospects for future generations!

Want to find out more about procurement?

Access more blogs, articles and FAQ's relating to procurement

Oboloo transparent

The smarter way to have full visibility & control of your suppliers


Feel free to contact us here. Our support team will get back to you as soon as possible

Oboloo transparent

The smarter way to have full visibility & control of your suppliers


Feel free to contact us here. Our support team will get back to you as soon as possible

© 2023 oboloo Limited. All rights reserved. Republication or redistribution of oboloo content, including by framing or similar means, is prohibited without the prior written consent of oboloo Limited. oboloo, Be Supplier Smart and the oboloo logo are registered trademarks of oboloo Limited and its affiliated companies. Trademark numbers: UK00003466421 & UK00003575938 Company Number 12420854. ICO Reference Number: ZA764971