Organizations are facing unprecedented change and disruptions that threaten their future viability. Inflationary pressures, expanding regulatory requirements, pricing fluctuation, an ever-evolving industry landscape due to M&A activity, and shifts to outcome-based pricing are all key forces compelling procurement leaders to reevaluate strategies.
In the midst of continuous disruption, it’s time for procurement leaders to be the disruptors, bring the function to life, work across siloes, and shift its reputation from cost-cutting to customer-centric and business enabling; this can be achieved with wholesale transformation that engages executives and peers, allowing procurement to take on greater strategic responsibility.
Added to the global picture are rising geopolitical tensions, which are damaging and shifting supply chains, the economic hangover of the COVID-19 pandemic, as well as soaring costs driven by broader inflationary pressures.
How can procurement professionals navigate all this whilst also building a digital-first function that can support the wider business in their growth aspirations? Companies should challenge their thinking and consider how they can rebuild the function focusing on the entire target operating model spanning the service delivery model (on and offshore), process, people, governance, data and technology layers whilst driving the needs of the entire business, delivering sustainable value and meeting regulatory compliance at the core.
Procurement needs a new perspective that is forward-looking, focused on aiming to maximize third-party relationships, innovation, integration, collaboration and data-driven performance.