Resources for Procurement Transformation
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SIMPLIFYING PROCUREMENT TECHNOLOGYIS TECHNOLOGY TO BLAME? Technology is an enabler for procurement transformation, but it is certainly not the only means to reach the end goal. Along with technology, we need the right combination of people and processes, to ensure that we derive full value, at every step that we take in the procurement transformation journey. It is a fine balance. The challenges of successfully deploying procurement technology have been well articulated in many thought leadership sessions till date; and stories of multi-million dollar failures have also spread through the grapevine. But has there been a fair representation of the core issues? Consider the poor rate of adoption of electronic procurement systems. Who is to blame? Users complain that they cannot find the exact 'item' they want to buy, especially when they need to get their job done in a hurry. The procurement team, on the other hand, has no 'easy' way to find out what the users plan to buy ahead of time, to be able to effectively aggregate demand, negotiate with suppliers and on-board preferred suppliers with their catalogs. It has been a classic conundrum. Consider the poor standards of purchasing compliance (that no one wants to talk about). Who is to blame? Users complain that they are not aware of changing procurement policies and preferred suppliers, and emphasize that every purchasing decision is unique, given the constraints and scenario at any given point of time. Procurement teams complain about the violation of preferred vendor and pricing policies, that appear routinely, and the seeming intransigence of users to un derstand and appreciate the merits of standardization. TABLE OF CONTENTS
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Procurement Transformation Resources |
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PROCUREMENT TRANSFORMATIONMake The Right Turns Along Your Transformation Journey Procurement transformation is a long journey for an organization that involves managing significant changes with its people, process and culture. For the executive leadership that is in charge of undertaking this transformation, the journey starts with a senior management mandate that seeks to bring about change not just in terms of ‘realized savings’ but more in how the enterprise continues to transact and do business with its suppliers in the longer term. Procurement transformation is not just about identifying savings opportunities and contracting better prices and terms with suppliers. It is more about enabling internal customers to continue to do their business in a more efficient way – by finding the best products and services they need, at the most competitive prices, and delivering on time. Procurement transformation has to be a win-win – both for the internal customer and for the procurement organization, and it takes significant wisdom and foresight on the part of the transformation leadership to plan for this journey together. Any transformation journey is fraught with risks and unless these risks are assessed and managed well ahead of time, the journey becomes hopelessly meandering and tiring. The journey is about a team that strives to reach a destination together, about its combined resources, its prior experience in undertaking such a journey, its planned route within the prevailing constraints of the overall business climate, and of course, budgets! TABLE OF CONTENTS
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