Procurement and Supply
Business Value of Procurement
Two comments we consistently hear ‘at the coalface’ are:
- if only procurement was better integrated with the business, and
- if only procurement was more Agile
Digital transformation of existing procurement processes can drive efficiencies, velocity, compliance, and uncover incremental savings. However, even with Artificial Intelligence and Machine Learning this is still ‘business as usual’ procurement. What is needed is procurement value transformation and to integrate procurement with the business, not just a digital transformation.
What would it mean to you if procurement could:
Increase value for both buyer and seller .
Increase predictability of complex deals on both sides
Reduce business risks such sole sourcing and security of supply
Align business relationships to strategic initiatives
Stay focused on the bigger picture (and not get stuck on one minor point)
And, what if procurement could create business value in a more Agile manner?
In this context Agile Procurement is more than doing the same thing faster. Agile improves accountability, productivity and quality. This translates to better deals, productivity and relationships.
From Waterfall to Agile
In the late 20th century most IT projects failed to achieve their objectives, on time, and on budget. Software development was linear, following a sequence of steps from requirements to design, development, testing and deployment. Each step was completed and signed off before moving to the next step. This known as a ‘waterfall’ approach.
In reality market conditions and other factors change, so requirements will change. Such changes force a trade-off between time, budget, and functionality. Something’s gotta give.
Although the ‘waterfall’ approach provides good controls over the software development process. Ultimately there was too much focus on process and not enough on value. The Agile Manifesto was conceived in 2001 as an upgraded approach to delivering value for IT projects.
Procurement traditionally follows a waterfall approach too. By adapting proven Agile techniques from the IT world to procurement and supply you will improve:
- Accountability – Agile roles, scrums, sprints and daily stand-ups provide higher levels of accountability, and clear mechanisms for addressing blockages.
- Productivity – Scrums and sprints are designed with productivity in mind, and to consistently deliver completed work. Colour reviews are more timely and productive too.
- Quality – Focusing on value and delivering completed work raises overall quality. Feedback is more timely, and priorities adjusted to deliver value.
Consulting, Coaching and Facilitation
Need help for an upcoming procurement project or transformation?
- To Enhance Business Acumen and Value of Procurement
- Adopt Agile on a High Profile Project
- Alignment to Global Procurement Standards
- Earn a Seat at the Table
- Become a Client of Choice, or to
- Negotiate Better Deals
Contact us for a free consultation to discuss what you want to achieve.