Category Archives: Procurement Transformation

Procurement Transformation

Keeping the Procurement System Working Like a Well Oiled Machine

Procurement is more than the process of finding, contracting, buying, and paying for products and services. In an effort to do all of these things and more in a way that creates a sustained corporate competitive advantage, most procurement organizations have built up systems of initiatives, each of which offers some improvement to their performance or results. This system of loosely interconnected disciplines and solutions drives procurement’s efforts through the procure-to-pay process and beyond. Some of the most common procurement … More

4 Essential Capabilities for Procurement Success in 2020

How can you prepare your procurement team for 2020 and beyond? Deloitte helped answer this question in a paper about the future of the Procurement profession: Charting the Course: Why Procurement Must Transform Itself by 2020. The report takes a look at the dramatic shift that Deloitte foresees in the coming decade and shares how procurement teams will need to adapt in order to avoid falling behind the competition. In addition to covering risk elements and the importance of expanding … More

ISM Review: Transforming Data into Actionable Intelligence

It was an honor and a privilege to speak to the local ISM Chapter in Dallas in August. The house was packed with many familiar faces (and some new ones). Everyone made me feel very welcome with good Southern hospitality. In case you missed my last blog post or my presentation last month, I shared how data is the key to procurement transformation. Today, I’ll dive deeper into the topic of transforming data into actionable intelligence in supply management. Procurement … More

4 Change Management Tips for a Successful Procurement Transformation: Part 2

Welcome back! Just joining in? Check out Part 1 here. Today, I’ll review the final two factors I believe are crucial when launching a successful procurement transformation initiative. 3. Take it one day at a time. I must admit that taking a “one step at a time approach” is often my own biggest challenge when working through a change management initiative. A colleague of mine once reminded me that I “can’t eat an elephant all in one day.” Change management … More

Data: The Key to Procurement Transformation

What is the key to a successful procurement transformation today? The question could be answered in a variety of ways, but for me – it simply comes down to the data ownership and visibility. In just a few days, I’ll be speaking at an ISM Dallas meeting about how best-in-class procurement organizations are using data as the enabler of change and the communicator in the procurement lifecycle. Consider the power of having a single interface to analyze your spend, supplier … More

4 Change Management Tips for a Successful Procurement Transformation: Part 1

Change is constant. Change is a gradual and natural process that requires direction and planning to reach a specific end goal. While it oftentimes leads to positive outcomes, some changes can be difficult to implement and maintain. In this two-part series, I will discuss four change management tips for a successful procurement transformation. When it comes to a procurement transformation initiative, change management is a critical driver for success – there exists a problem to solve, and you have to … More

A New Procurement Calls for a New Kind of Purchasing Hero

Despite the challenging circumstances of today’s economic environment, you must embrace change in order to support shifting external environments and business strategies. At the same time, you look for opportunities to capitalize on disruptive changes in supply markets, which can drive greater value for your organization. You must become a purchasing hero. What is a purchasing hero? We believe a purchasing hero brings knowledge capital to multiple departments. They inspire collaboration and cross-coordinate with as many internal stakeholders as possible. … More

12 Symptoms That May Suggest a Procurement Transformation

Procurement transformation is often the greatest single driver of sustainable and implementable savings for companies. Yet these programs, by their very nature, often can disrupt aspects of business activity while changing procurement’s overall role and structure under the broader functional and enterprise umbrella. No company should enter a procurement transformation without realizing that such programs will nearly always result in: material turnover of key staff potential turf battles with line of business holders ongoing technology and process change the potential … More

Five Ways to Put Discipline into Your Sourcing Process in 2012

As procurement departments are trudging down the path to becoming best-in-class, Integrated Category Management organizations, it can help to take a step back to look at the big picture. Putting out fires and maintaining laser-like focus on cost reduction and other tactical activities can consume our days and force us to put more strategic endeavors on the back burner. So, before you move into the holiday season and start thinking about your New Year’s resolutions, do what you can to … More

You Can’t Build Credibility in a Vacuum: Part 2

In Part 1, I wrote about learning the importance of focusing on collaborative communication to help projects succeed. Now, I’d like to share a great example about how communication plays a pivital role in planning a large initiative, such as a procurement transformation. Years ago, I worked on a procurement transformation project where the client lead prevented us from engaging with the business owners until we had mined the data, scheduled projects across several waves and  conducted both an internal and external category analysis to … More

Burger King Positioned In Prime Opportunity for a Procurement Transformation

Burger King recently announced their agreement to a $3.26 billion buyout from 3G Capital, a small private equity firm. Despite Burger King’s shares recently reaching an 18-month high, the company is still trying to cope with its five consecutive quarters of declining sales. An article in USA Today suggested Burger King can turn things around by taking a different approach with 3G Capital by becoming more efficient, expanding its international presence, and creating new menu items inspired from customers rather … More