Many procurement organizations, invest most of their time and focus on managing suppliers and ensuring the lines of business are supported.
This is a good start for less mature organizations, but leaves a lot to be desired for a more mature procurement function.
As a procurement organization begins its journey, no matter how mature the business function is, it must take a deeper focus on the team.
- Category Management: Empowering the sourcing function to influence and guide the business will provide the procurement function a greater level of credibility resulting in a stronger ability to influence decision-making
- Supply Chain: Engage suppliers, at all levels, in collaborative innovation and business improvement to bring new ideas and value to the business
- Stakeholders: Collaborating with the lines of business early and often will cement the relationship and trust with procurement, and results in long-term proactive engagement
- Cross-Functional Leaders: There is often untapped value from the other business functions that influence spend management, such as Finance, Operations, and IT.
The journey is best endured with a team that is all pulling in the same direction.