Why do you need this transformation?
- Do not have well-defined and aligned procurement and supply chain strategy
- Do not have strategically positioned procurement function
- Do not have clear procurement roles and responsibilities
- Do not have strategic procurement skill
- Do not have KPIs, aligned with business and procurement objectives
- Have functional silos and barriers between people and departments
- Have disconnected, redundant, duplicated operational processes
- Have insufficient level of automation causing repetitive and manual tasks
- Have fragmented IT infrastructure / systems and information gaps
- Do not have standardized tools & templates (e.g., supplier contract, NDA)
If your answer is YES to any of the questions above, then you need to transform your procurement function to re-gain its strategic position and to ensure efficient execution of processes.
12 key questions that you need to answer when transforming your procurement:
- What are the gaps in my current organization and processes in terms of bottlenecks, inefficiencies, and risks?
- What is the required organizational structure including the category tree?
- What is the required size of the procurement function?
- Is there a role for outsourcing in procurement? What are these roles?
- What level of cross-functionality is required? How to set-up cross functional teams?
- What are the to-be operational processes?
- What are the to-be strategic processes?
- What are the supplier management processes?
- What are the roles and responsibilities?
- Which KPI’s to monitor?
- How to align procurement targets with other departments (i.e., production, sales)?
- Is my organization ready for transformation and change? What is the level of readiness? What are the risks of this program? What is my mitigation plan?
Building blocks of procurement transformation:
What will you achieve after transformation?
- Lower Total Costs: Lower the purchase price of goods & services, and assets including operating costs for their lifetime.
- Maximize Speed and Quality: Streamline and digitize purchasing process starting from need identification until receipt of goods & services, and payment.
- Improve Compliance: Ensuring that all parties procure with the terms and conditions outlined in the contracts, protecting organization from fraud and wrongdoing.
- Do not waste time, start transforming your procurement to lower costs.
- If you need our assistance, give us a call. use any of our contact routes including Live Chat,
- The Enchange Supply Chain House can assist your journey to supply chain excellence.
- Read more articles on Supply Chain Excellence and Route to Market on our website where you can also subscribe to our frequent updates.