Having a world class procurement function has become a hot topic over the past few years with more and more procurement departments really stepping up their game in order to deliver a greater return on investments for the business.
As the Deloitte’s global chief procurement survey pointed out, 51% of procurement leaders believe their teams do not have sufficient capabilities to deliver on their procurement strategy.
Another aspect we found in the same survey is that investment in training and declining participation in talent development strategies is still a concern.
Training has a big impact on how teams perform. A key factor in the success of a world class procurement function is whether people have the right skill sets. Tailored training sessions for your business can have a powerful impact in getting the most from your investment.
It is very important to have an aligned and fuelled procurement team with well-run processes in place to ensure that procurement earns its seat at an enterprise board level. Having the correct operating model in place is a good start. To achieve this, the need is to recognise and understand where the function currently is and how it operates in the business. Also an important aspect is to have visibility of other organisations and benchmarks within the industry that you are operating in. A diagnostic needs to be considered to have visibility of the transformation steps needed to reposition, restructure and evaluate the procurement propositions.
Having a skilled procurement team could make the difference between world class and average procurement functions. The team must be appropriately skilled and resourced to be able to implement the procurement strategy that you have initially laid out.
To get the most from procurement, organisations need to ensure the right people are in place. They need to have the relevant cross industry experience, be multi-disciplined, and experienced in having a strategic oversight of business and its enablers. Moreover, they have to be aligned with key stakeholders and business influencers. They need to understand and appreciate the value creation and risk mitigation procurement presents, and align the procurement strategy to the core business strategy and its key drivers.
Another way to go could be to get support for your procurement team in order to help them achieve your overall procurement strategy. You can simplify your eProcurement systems by using different types of operational procurement support services. From outsourced e-auctions, to spend analysis and support desk functions, operational support is in fact critical for a procurement function to work smoothly.
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