Procurement has its work cut out for it, and for mid-market companies who are already struggling with resources, it’s even harder.
Procurement leaders need to take their business strategy to the next level, and they can do that by using digitalization to their advantage. Instead of continuing in a disconnected, outdated operating model, procurement can evolve with outcome-driven solutions that bring value to both suppliers and customers.
Simply the best suppliers for your customers
A mid-market company values its suppliers, but the future of procurement demands a new operating model that encourages supplier performance through more meaningful relationships. You want only the best for your customers, and that includes working with the best suppliers, those that bring innovation to their products and services. Through smart and profitable integration with the latest tech, mid-market companies can seize opportunities to align suppliers with their business objectives and boost their bottom line.
How can you achieve this?
Before you can soar, you must learn how to fly. So to succeed at digital transformation, you must know how to maximize value through on-demand data insights with emerging technologies. Category innovation helps you unlock untapped value through automation, including data and analytics for more informed decisions, predictive AI to get ahead of trends and deep insights for better game plans. Don’t fear disruption. Seek it for performance improvement and supplier engagement.
Please your internal customers
Plagued by legacy systems and processes, procurement often struggles with internal customer relationships. A customer-centric approach can change that and shift procurement’s role in the business from a spend gatekeeper to a legit business partner. Procurement can succeed by investing in digital solutions; solving the business’ problems through products, skills and innovation; and taking a human-centered approach to generate customer satisfaction.
Procurement goes digital
Technology creates opportunities for procurement professionals to support the business’ end goals. Embracing automation and data insights produce greater efficiency and effectiveness as intelligent assistants take over mundane, repetitive tasks and provide key insights to enrich discussions and negotiations. Start with extreme automation and integration to overhaul the end-to-end procurement cycle with cloud and even blockchain.
Insights and analytics
Procurement professionals of the future will become resident data scientists, taking previously collected data from internal and external resources and integrating it seamlessly to deliver easy-to-digest information.
How to build your new procurement team
To step into the future, your procurement team needs professionals well-versed in analytics and new technologies. It must also be ready to welcome a millennial workflow that requires a different “employee” experience and gig workers to complete highly analytical tasks. Look to upskill current employees, who may already have the cross-functional expertise, business acumen and negotiation readiness to lead procurement through a successful transformation.
Do more with less
Execute more with less with cross-skilling and specialist resources. A new lean structure simplifies decision-making, encourages proactive behavior, and improves the department through continuous innovation. Leadership involvement drives your success and accountability.
Initiate procurement upgrade
To start your transformation, let’s chat. KPMG can help you define which new technologies are affecting your business the most, how to integrate them to your advantage and how to shift focus from cost to the customer. And if you haven’t started using automation yet, we’ll help you. Our professionals’ digital expertise will raise your supplier and customer relationships to the next level and help you succeed in today’s modern world.