Source One's Procurement Transformation eBook Presents Insights and Procurement Best Practices from Supply Management Experts
Supply Management thought leaders offer insights, reflections, and sourcing best practices in Procurement Transformation: Industry Perspectives.
Over the years, Source One’s spend management consultants have helped guide the Procurement function forward and drive the conversation surrounding its strategic value. Though a lot has changed in that time, the topic of Procurement Transformation remains popular as ever.
What is Procurement Transformation?
That’s a big question. It’s a question that every organization will answer differently depending on what they want, need, and can reasonably expect of their Procurement function. The unique perspectives, experiences, and capacity of each organizations ensure there’s no one-size-fits-all approach to optimizing Procurement and no catch-all definition for Procurement Transformation.
In the spirit of diverse perspectives, Source One gathered reflecting from a number of Supply Management thought leaders. Approaching Procurement Transformation from a number of angles, they provide a detailed overview of the conversation surrounding the subject.
Source One published their insights in a five-part series titled Procurement Transformation: Industry Perspectives.
Part I – Looking Back
- Procurement Transformation: Then & Now by Jim Baehr
The Sourcing Strategies Group’s Jim Baehr kicks things off by looking at Procurement’s strategic evolution over the last three and a half decades. Touching on a series of Supply Management milestones, Baehr suggests that our understanding of Procurement Transformation has evolved alongside the function itself.
Part II – The Right Mindset
- A Change of Mindset: Transforming Procurement Transformation by Phil Ideson
The Art of Procurement Founder asks why so many Procurement Transformations come up short. The answer, he believes, may lie in the department’s mindset, mission, and motivations. He encourages Procurement to do some soul searching and reflect on its unique role within the business before embarking on a transformation.
- To Transform Procurement, Start with Why by Joe Payne
Why should we pursue a Procurement Transformation? To Source One’s VP of Professional Services, this is the question that ought to drive every initiative. Unfortunately, too few organizations ever stop to ask why. They pursue Transformation for Transformation’s sake and rarely realize the value they expected. Payne implores them to slow down, reflect, and “never lose sight of that why.”
Part III – People, Processes, Technologies
- Mind the Gap: Transforming Procurement’s Approach to Talent by Naseem Malik
Malik, a Managing Partner at TYGES, opens Part III with a question. He asks, “What’s the most important tool for constructing an effective Procurement department?” The answer is simple. Even in an era of technological wonders, people are still Procurement’s most indispensable resource. Throughout his contribution, Malik encourages Procurement to transform its approach to both recruiting and retaining talent.
- Trust the Process: Addressing Non-Productive Friction in Procurement by Kelly Barner
“Nearly every organization,” Barner writes, “can count internal friction among [their] problems.” The Editor-in-Chief of Buyer’s Meeting Point reminds readers, however, that “not all friction is non-productive.” Taking a closer look at Procurement’s various processes, Barner describes instances of both productive and non-productive friction. The former, she suggests, means Procurement’s doing its job. The latter is a genuine problem that any successful Transformation must address.
- Not All Solutions are Solutions: Rethinking Procurement Technology by Kristian O’Meara
Everyone in Supply Management would agree that the hype surrounding emerging technologies often gets out of control. The feverish excitement around Procurement’s digital transformation leads many Procurement teams to invest in technology without doing their due diligence. JAGGAER’s Kristian O’Meara cautions encourages Procurement to exhibit a curious yet skeptical attitude in its search for new tools. “Technology,” he writes, “can’t drive Procurement’s next era on its own.
Part IV – The Road Ahead
- Procurement’s Not Just About Compliance Anymore by Tom Rogers
As the CEO of Vendor Centric, Rogers knows a thing or two about managing vendor relationships. In the past, the process was largely a matter of selecting a vendor and enforcing compliance. Today, however, emerging risk factors compel organizations to ramp up their focus on vendor risk management. Procurement’s supply chain visibility and flexible skillset equip the department to take a leading role in introducing these risk management programs and processes.
- How Advanced Sourcing Will Transform Procurement by Dr. Michael Lamoureux
The Editor-in-Chief of Sourcing Innovation takes aim at organizations who believe they’ve ‘transformed’ with the help of an eSourcing tool. Lamoureux informs readers that next generation opportunities, true Procurement Transformation, will only occur when organizations embrace advanced sourcing tools. Powered by predictive analytics, Should-Cost Modeling, and decision optimization, these tools will usher Procurement into the next stage of its strategic evolution.
- Perception is Reality: Procurement’s Image Post-Transformation by Diego De la Garza
A successful initiative is only the beginning of Procurement Transformation. Throughout his contribution, Source One’s Director emphasizes the importance of building and sustaining momentum in the days, weeks, months, and years following an initiative. He writes, “I’m a firm believer that perception is reality.” Procurement, he suggests, can only produce value if its peers within the organization consider it valuable and actively collaborate with the unit. He offers strategies for promoting alignment and stresses the importance of training Procurement to ‘speak the language’ of other departments.
Part V – The Last Word (For Now)
- Measuring Success: The Fourth Pillar of Procurement by Jennifer Ulrich
Source One’s Associate Director and Procurement Transformation Practice Lead brings things to a close with her discussion of metrics, reporting, and the future of Procurement Transformation. Measuring Procurement’s performance and reporting on its success, she suggests, are full-time jobs. Whether you’re looking to build the business case for a Procurement Transformation, attempting to boost morale mid-Transformation, or hoping to boost post-initiative momentum, it’s essential to clearly and consistently communicate Procurement’s value.
Supply chain professionals can now enjoy all five installments of Procurement Transformation: Industry Perspectives in a single, comprehensive volume. Download this Procurement Transformation eBook today.
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