Clearly define goals
Every procurement transformation must start with a clear framework of how to achieve success. Leaders should define the objectives of a procurement transformation programme with measurable goals along the way that are aligned with the overall organisation’s strategy. These goals should go beyond simply cost savings and include the likes of value creation, risk mitigation, resilience and support for the wider business strategy. Transformations can fail when goals are vague or lack purpose which is why providing a clear direction can help position a procurement function in the right direction. Procurement isn’t transactional, it is a strategic value generator.
Create a detailed procurement roadmap
Once goals are clearly defined, the next part of a procurement transformation project should be about creating a roadmap on how to get there. Procurement transformations are filled with complexity so without a structured way forward, the path could get muddy. A roadmap should include analysis of current processes, areas for improvement and a playbook to meet objectives and achieve success. Key stakeholders should be able to see progress to ensure all parties are in alignment and on the same page with the pace.
Secure leadership buy-in
All procurement transformations need leadership support. Without buy-in, adoption won’t take off and resistance to change management will take place. Procurement leaders should seek to identify champions from senior management within the organisation to communicate its importance throughout the workforce and to allocate the necessary resources to achieving it. It is a key reason why clear goals and a roadmap should be defined prior to securing leadership buy-in as it will allow the vision to be trusted and should mean greater investment in the journey.
Leverage data analytics
Data is an important tool for any modern day Chief Procurement Officer. Data can be used for a plethora of different purposes including obtaining deeper insights into market trends or supplier performance and as a result powering better decision-making. Leveraging data analytics throughout the procurement process will help keep leaders on track and provide metrics and KPIs to measure against. Against a challenging and ever-changing geopolitical backdrop, procurement must transition from reactive to predictive. Analytics transforms procurement from a reporting function to a strategic advisor to the business.
Get suppliers on board
Success is difficult to achieve alone – procurement needs suppliers. Working in close collaboration with key, strategic partners will unlock significant value for procurement leaders and their teams. Building mutually beneficial and trusted relationships can act as a competitive advantage for organisations and help achieve transformation goals quicker. Engaging suppliers is important because it improves adoption of new tools and processes while also unlocking innovation and joint value creation. Engaging suppliers also ensures the external ecosystem evolves alongside internal changes.
