Procurement Leaders is often the case that technology is thought of as the sole solution to procurement transformation, sourcing and procurement is a critical business function that has significant and direct impact on bottom-line performance, furthermore, as a client once told you procurement professionals are hired for procurement skills and fired for behavioural skills.
Through your services, you help your organization drive sustainable improvements to make procurement a source of value and innovation across your enterprise, business executives, and especially procurement leaders, are having to maintain business operations, fulfill urgent demands, and mitigate supplier challenges against a backdrop of significant disruption to their teams, their people and their local communities, correspondingly, use the customer responses to determine key satisfaction areas for your procurement team to focus on in the coming quarter.
Many procurement roles are very analytical and require working with spend data, so a financial background is beneficial, procurement professionals work with suppliers and distributors regularly and therefore need to be able to possess confidence and an awareness of how the industry operates, hence, cost of procurement as a percentage of spend is a barometer of organizational efficiency, especially in an era when supply managers budgets are flat or declining.
Spend analysis is the practice of reviewing procurement spend data to decrease costs, increase efficiency or improve supplier relationships, aligning the procurement function with the goals of your organization is one of the key ways to improve the effectiveness – and success – of the procurement team, furthermore, the ability to drive value to your organization through the utilization of effective procurement can be a significant differentiator and competitive advantage for organizations.
Leaders, procurement still struggles to get the necessary mandate and attention from top management, cyber-security breach could result in the diversion of resources, including monetary information, to other areas, or supplies may be sent to incorrect locations or in inappropriate quantities. In addition, cloud computing and SaaS products are used to support many business operations and procurement is no different.
At the moment, most organizations only manage part of spend with procurement technology, strategic sourcing plays a key role in improving the bottom line of any business and has a direct impact on cost savings. In conclusion, notably. And also, supporting enterprise digital transformation objectives is one of the areas that procurement is least prepared to address.
Outsourcing procurement is often undertaken by very large organizations to save money, thus, it is essential to accept procurement as an important lever for optimizing spend, investing in innovation and ensuring sustainable growth, also, akin kpis enable the procurement organization to control and optimize the quantity, quality, costs, timing and sourcing of purchasing processes.
Generally, procurement involvement is mandated in some areas of spend called managed categories, and other categories of spend are left to the business to manage, develop procurement strategy for your organization with defined short term and long-term objectives, budgeting and with focus on high opportunity areas of spend savings across the business, also, often good procurement strategies can be the difference between a profitable organization and a failed business.
Want to check how your Procurement Leaders Processes are performing? You don’t know what you don’t know. Find out with our Procurement Leaders Self Assessment Toolkit: