In the world of procurement, excellence is not just a goal – it is a journey of continuous improvement and alignment with the core values of a business. But how to achieve procurement excellence? Experts from August Consulting share seven areas that contribute to best practice performance.
Alignment with Business Objectives
At the heart of procurement excellence lies a deep alignment with the business objectives. It’s about understanding the company’s direction and ensuring that every procurement decision supports the overarching goals.
Executive sponsorship from the leadership team plays a crucial role in this area, as it provides the necessary backing and resources to drive procurement initiatives forward.
Strategic Value Proposition
A clear link with strategy and business objectives is essential. Procurement must not only support but also enhance the company’s strategic direction. This requires a clear value proposition that outlines the benefits and efficiencies procurement brings to the table.
Data-Driven Decision Making
In today’s fast-paced business environment, data-driven insights and performance reporting are critical. Good data allows procurement professionals to identify trends and opportunities within the business to drive efficiencies. The ability to extract meaningful reporting from this data is what sets apart good procurement practices from great ones.
Performance and Change Management
A strong link to performance is vital. Measuring outcomes not only builds momentum but also ensures that procurement activities are contributing positively to the business. Being a change agent requires the ability to drive changes that lead to better business outcomes.
Stakeholder Engagement
Understanding key stakeholders and what is important to them is a cornerstone of procurement success. It is about giving stakeholders a reason ‘why’ and explaining the implications for them. Strong communication skills are necessary to bring people on the journey, ensuring that everyone is on board with the project objectives.
Focus on Training and Systems
Training and implementation focus cannot be overstated. Alongside this, strong system and process enablement ensures that the organisation’s procurement activities are efficient and effective. Organisations that leverage new technology and focus on learning and experimenting are the ones that stay ahead of the competition.
Value Creation and Project Management
Finally, a relentless focus on value creation and strong project management ensures that procurement activities are always aligned with the company’s purpose. Agile methodologies can be particularly effective in maintaining this focus and delivering on the value proposition to the business.
Author: Consultancy Australia
