The Procurement Function currently exists in an environment of ever-increasing technological advancements. Procurement Leaders are tasked with the responsibility of paving the way for transforming their operations to meet the demands of the modern business landscape.
Currently, Procurement Function Models are fragmented, tactical focused, cumbersome, siloed, and labor intensive.
The future requires the Traditional Core Competencies of:
- Category Management
- Supplier Management
- Invoice to Pay Processes
- Source to Contract Processes
- Procure to Pay Processes
Are to be underpinned the by the following Enabling Mechanisms into a cohesive model:
- Big Data Analytics Leverage. Reporting and Scorecard Mechanismsfacilitate reports on compliance, spend and supplier dynamics. Descriptive, predictive, prescriptive, autonomous, and risk management autonomous Analytics Models provide unprecedented decision-making and forecasting power. AI, Machine Learning, and IoT Mechanisms are integrated into Big Data Models for added impact.
- Value Analysis and Value Engineering. A shift from focusing primarily on price points to Value Creation and Engineering. Opportunities for Cost Reduction through collaboration and Systems Integration are leveraged via Strategic Alliances and Partnerships. The key is to leverage Core Competencies and Collective Innovation.
- Continuous Process Improvement Leverage. The Strategic Leverage of Continuous Improvement Models such as Kaizen, LEAN, Lean Six Sigma, ISO to realize cost reduction and containment. These systems are integrated with Big Data, AI and Machine Learning.
- Cyber Security Mechanisms. Cyber Security Models are leveraged to ensure supply mechanisms are resilient from cyber-attacks and cyber terrorism. These systems are integrated into autonomous AI and Machines Learning Mechanisms as part of a wider Risk Management Strategy.
The key to realizing the above requirements is in the acquisition of Buy-in and effective Change Management. Special care must be taken to understand that resistance to change is natural and must be effectively managed. Including all key stakeholders early and continuously in the deployment process will yield great benefit.
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