How Procurement Transformation Creates Value For Your Organisation
Procurement transformation is the process of implementing changes and improving how a company or organisation procures goods or services. It’s about moving from a more tactical function to a more strategic, more business-focused one and requires a thorough analysis of your organisation’s (procurement) systems and processes. Once the organisation has conducted the analysis, it can devise a clear plan of action and begin implementing changes. A procurement transformation creates real value for an organisation. Here are some ways it does so.
Transformation boosts efficiency.
A good procurement transformation project injects more efficiency into procurement processes. The project creates scope to automate some processes, implement new procurement software and tools, and streamline processes. These measures can help procurement teams save time and effort when procuring goods and services.
Transformation improves stakeholder relations.
Procurement transformation creates the chance to improve relationships with suppliers and other stakeholders. Better relationships with internal stakeholders and internal departments are especially an outcome of procurement transformation. The analysis and subsequent overhaul of processes and systems help them develop a greater understanding and appreciation of the value of procurement and how it fits into the broader operations of the business or organisation. Transformation projects can also deliver greater engagement between internal departments, which, in turn, can lead to better selection of suppliers and better contracting.
Procurement transformation can increase profitability and return on investment.
Transformation projects will identify new ways to streamline the procurement workflow and reduce costs. If a business or organisation is looking to improve its bottom line or is operating on a tight budget, or even if it isn’t, the cost reduction helps it to become more profitable.
Transformation can also involve implementing new technologies or working with new tools, which can generate higher profitability or returns on investment. Automation can free up employees to perform other tasks instead or use the technology to complete tasks quicker than before. Not only this, but the use of technologies to liberate employees from tasks that might be mundane or laborious will have the benefit of motivating your procurement team and making the employees feel more valued.
Transformation creates greater transparency.
New technologies and processes make tracking and monitoring procurement operations easier. This natural new ease of tracking and monitoring has the automatic effect of increasing transparency. As a result, the risk of corruption and fraud decreases.
Procurement transformation looks at costs and broader aspects of your business or organisation to produce longer-term value. We look at your business, human resources, suppliers’ systems and processes and recommend improvements in category organisation and process, procurement strategy, purchasing processes and e-procurement. If you’d like to turn your procurement around, contact us and learn more about how our procurement transformation service can change things for you and add greater value to your business.
