Procurement has historically been under immense pressure to remain flexible and constantly adapt. Between keeping up with volatile economic conditions, product changes and regulatory requirements — all while focusing on adding value and increasing efficiency — change, agility and the ability to balance various critical, and often competing objectives, has always come with the territory.
Adapting to change can be hard for even the best-in-class organizations, but procurement’s proven ability to evolve over the years has put the function in a unique position to drive the business forward.
The new procurement organization has arrived, one that has a seat at the table and is seen as a strategic asset to the organization. This new world, where the entire procurement lifecycle is automated, calls on leaders to be value engineers that are driven to do more than simply save money and focus on transactional considerations. The new imperative is to take supplier development, compliance, governance and risk management into consideration, understanding how each impacts an organization’s ability to generate value. Teams can use these levers to get more out of the purchasing process beyond incremental cost savings. Success starts with a few core considerations:
- Collaboration is key in procurement: Collaborating with colleagues and stakeholders – marketing, finance, product development, engineering, sales — increases process efficiencies by giving teams the opportunity to proactively identify and resolve problems earlier on in the process. It also helps teams balance the various interests of each department to get to an end result or product that works for everyone.
- A diverse skillset is essential: Today’s procurement professionals come from diverse backgrounds that can offer fresh perspectives and bring a variety of skills to the table. Tapping into this wide knowledge base is essential for co-learning, solving problems and ensuring the team is effectively complying with regulations and managing risks.
- Teams need the latest tools and technology: Procurement’s ability to support the organization stems in large part on the function’s ability to effectively implement the latest in technology and data analytics. Doing so can give teams unparalleled business intelligence that helps them make informed, confident and profitable decisions that move the company forward and protect their seat at the table.
At BravoSolution, we believe these pillars are core to the new procurement organization, and ones we are striving to enable in the teams we work with every day. Our mission is to support the leaders at the forefront of this transition along their procurement journey.
Learn more about how the new procurement organization is leading the next stage of digital transformation and how BravoSolution can help in my recent LinkedIn Pulse Post, BravoSolution: Enabling Procurement’s Journey.