Achieving Procurement Excellence
Organizations bear responsibility for the environmental and socio-political effects of their operations. Procurement, as a key interface, can translate corporate objectives into actionable solutions. This is most effectively accomplished through a holistic, value-driven transformation of procurement processes.
Evolution of Procurement – Strategic Pathways for the Future
The significant challenges of our era have underscored that continuing with "business as usual" is unsustainable in the long run. Consequently, many organizations are re-evaluating their purpose and business models, setting ambitious ESG targets and embracing their social responsibilities. This shift assigns procurement a transformed role accompanied by new demands. Future-focused procurement operates digitally, collaborates closely with supply chain partners to foster innovation and achieve sustainability objectives, and significantly contributes to value creation independently.
Our specialists are ready to assist you in optimizing your procurement strategy for the future and unlocking its full potential.
Mission and Objectives of the Procurement Team
Employees perform more effectively when they fully comprehend the mission and objectives of their work. Companies aiming for growth should prioritize this understanding. As the overall mission and goals of an organization evolve, these changes must be translated and integrated into individual departments.
As a CPO, it’s essential to clearly articulate the necessity for transformation to convert conventional procurement practices into a robust and future-ready function. Incorporating these updated goals into employee incentives is also beneficial. This approach not only boosts individual motivation but also highlights the significance of the new objectives.
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Adding value through innovation and sustainability
The traditional core areas of procurement are efficient procurement processes, commodity group management, and supplier management. These tasks will remain, but they will be eclipsed in the future by other aspects, including, the further development of strategy and competencies and the management of innovation, sustainability and social responsibility. Modern procurement is increasingly taking on interdepartmental tasks that require close cooperation with specialist stakeholders. In the future,
The topic of sustainability has also significantly increased the willingness to examine and restructure one’s own supply chain if required. As an increasing number of countries adopt laws for due diligence in the supply chain, it is necessary to reduce ESG risks that can arise, for example, through dependence on individual suppliers or regions of origin. In addition, many companies are setting their own targets. Procurement will increasingly be faced with the task of analyzing new markets and approaching new suppliers.
You can read about the role of procurement in sustainability here.
Digitalization
The COVID-19 pandemic acted as an accelerator for the digitalization of procurement, with many companies finding that a lack of transparency in the supply chain made it difficult or even impossible, to maintain their own supply. The use of digital risk information systems and the networking of information sources have therefore increased significantly.
In order to be able to fulfil their role as innovation and sustainability
To find out how procurement can be transformed through intelligent digitalization, click here.
Successful employees - training competencies
Goals and strategies are important for the development of a company. However, transformation begins in the minds of those who are supposed to realize it. It is important to precisely define the differences between current and future requirements, involve the employees in this process, and identify the opportunities for further development. Our training center supports your team with individually tailored training courses
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