Procurement Transformation

Companies are responsible for the environmental and socio-political aspects of their activities. This is where procurement, with its interface function, is called upon to translate corporate goals into solutions. This is best achieved through a comprehensive, value-creating transformation of procurement.

 

Transformation of procurement – with strategy into the future

Corona and the climate: The major crises of our time have made it clear that “business as usual” is not a sensible option in the long term. Many companies are therefore questioning their purpose and their business model, setting their own ESG goals and thus facing up to their social responsibility. This development gives procurement a new role that goes hand in hand with new requirements. Procurement of the future works digitally, it cooperates closely with partners in the supply chain to drive innovation and achieve sustainability goals, and it makes a strong independent contribution to value creation.

Our experts will be happy to advise you on how to optimally position your procurement for the future and leverage untapped potential.

 

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Purpose and goals of the procurement department

Employees are more successful the better they understand the goals and purpose of their work. Companies that want to develop should take this into account. When the purpose and goals of the company as a whole change, this change must also be broken down and integrated into the individual departments.

As CPO, you should be as specific as possible about the need for change in order to transform traditional procurement into a future-proof and powerful procurement. It also makes sense to include the new goals in the incentives for employees. This not only increases individual motivation, but also demonstrates the importance of the new goals.

 

How we can support you

Adding value through innovation and sustainability

The traditional core areas of procurement are efficient procurement processes and commodity group management, as well as supplier management. These tasks will remain, but will be eclipsed in the future by other aspects: the further development of strategy and competencies as well as the management of innovation, sustainability and social responsibility. Thus the:modern procurement:in is increasingly taking on cross-sectional tasks that require close cooperation with the specialist departments. In
the future, suppliers will be more intensively involved in innovation development than in the past. In this scenario, procurement must participate in the planning process at an early stage in order to qualify potential suppliers and to be able to react to changes at an early stage.The topic of sustainability has also significantly increased the willingness to examine one's own supply chain and restructure it if necessary: As more and more 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 therefore increasingly be faced with the task of analysing new markets and approaching new suppliers.You can read about the role of procurement in sustainability here.

Digitalisation

The Corona pandemic acted as an accelerator for the digitalisation of procurement: many companies found during the crisis 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
partners in the future, procurement managers need to be relieved of routine tasks. Digital assistants can, for example, take over the ordering of standard requirements. The benefit of using digital tools must be clear, otherwise employees will perceive the new tools not as support but as a burden.To find out how procurement can be transformed through intelligent digitalisation, click here.

Successful employees - training competences

Goals and strategies are important for the development of a company. But de facto, transformation begins in the minds of those who are supposed to realise it. It is important to precisely define the differences between current and future requirements, to involve the employees in this process and to show them the opportunities for further development. Our training centre supports your team with individually tailored training courses so that they can make the most of these opportunities and the transformation succeeds.

 

Get to know our transformation experts

Stefan Benett

Managing Director

contact@inverto.com Contact

David Ring

Principal

David.Ring@inverto.com Contact

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