True Procurement Transformations, Part I
PurchTips edition #268
By Charles Dominick, SPSM, SPSM2, SPSM3
What Is A True Procurement Transformation?
One of the hottest buzzwords in the profession is "procurement transformation." But if you talk to a few leaders doing "procurement transformations," you'll note that the phrase means different things to different people.
In this edition of PurchTips, I will share three of the seven areas that I feel should see major changes after a true procurement transformation. In the next edition, I will share the remaining four.
- Staff - Chances are if your existing staff had the right skills to meet the organization's current and future needs, you would not be leading a procurement transformation. That's not saying that you need to oust your incumbent staff members and replace each one. But you will need a more highly skilled staff which can be accomplished through training existing staff in current procurement best practices; adding new, more highly skilled team members; or both.
- Supply Base - There is a point of diminishing returns when going back to the same supply base year after year for new innovations, cost reductions, and process improvements. Continually bringing a subset of new suppliers into your supply base will open up doors to value not achievable by working with the same suppliers for decades on end.
- Stakeholder Relationships - A goal of many procurement departments is to get more respect from their stakeholders. But a true procurement transformation is not a "one way street." The procurement team needs to understand its stakeholders, their goals, and what their work means to the success of the organization in order for the procurement department to make the changes necessary to earn the respect of stakeholders and contribute to the overall success of the organization.
Do You Want a More Rewarding Procurement Career?
Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.
Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM® Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!
Need Better Performance From Your Procurement Team?
Are you a procurement leader whose team isn't achieving the results you know are possible? Maybe it's not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.
You need a performance improvement plan that's easy to implement and quick to produce results. The NLPA can help.
Download our whitepaper "The Procurement Leader's Guide To A More Successful Team." You'll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.
Are You Getting The Most Out of Your NLPA Membership?
Members of the NLPA get more than just articles like this by email. As a member, you also get access to:
- The Procurement Training & Certification Starter Kit
- The latest Purchasing & Supply Management Salaries Report
- Leading-Edge Supply Management™ magazine
- Members-only webinars 10x per year
- And more!
If you haven't been taking advantage of these benefits, why not log in and start now?
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