How can your Procurement function deliver more value?
So, what is it that procurement can do to deliver more value?
It’s not just finance that should expect procurement to achieve the following, but it’s also an expectation for procurement itself and the rest of the business.
Procurement should align its vision, strategy and policies with the overall company objectives. When procurement does not align these with company objectives, we found that this led to friction between stakeholders and unrealised opportunities.
There needs to be a focus on long-term value creation for internal stakeholders and external customers instead of short-term cost reduction and risk mitigation. An internal focus on improving the way the company operates, and an external focus on working with the supply base to generate innovation.
Finally, procurement should conduct its business in a more planned and deliberate way. We found that procurement needs to increase its trust with stakeholders to get involved in projects earlier. The only way to better the maturity of the procurement function is to move away from being reactionary, to pre-planned approaches to future problems.
Three expectations to take away. How do these compare to your procurement function, within your organisation?
If successfully implemented, you’ll hopefully see not only finance and procurement experience less distance in the expectations of the procurement function, but also an improvement in how your organisation deals with external stakeholders, and internal management.
If you’re interested in how you can assess and improve your procurement maturity to deliver against organisational goals, we’d like to offer the opportunity to meet with Grosvenor Procurement Advisory’s Director, Dr. Stefan Gassner.
Together with a colleague, he will analyse your current situation, benchmarked against best practice and provide a roadmap of the options and activities that could be undertaken to improve your organisation’s procurement performance.
For this, we’d love to conduct a three-part workshop, including the following diagnostic steps:
- Understand your customers
- Understand your spend
- Understand your current capabilities and maturity
Follow the button below this article to submit your expression of interest.