Transforming Procurement: 4 Key Strategies for Success


Many companies miss out on improving their expense ratio by 1 – 3% due to immature procurement functions. Key Strategies for Success:  1.  Procurement Pain Points  2. Procurement Objectives  3. Procurement Transformation  4. Transformation Approach

1. Procurement Pain Points

1. Lack of standard procurement    process for engaging with suppliers 2. Non-procurement 3. performing procurement activities 4. Poor quality of information on spend     with each supplier

2. Procurement Objectives

Procurement can deliver strategic value if optimized along 4 key objectives:  1. cost 2. compliance 3. quality 4. speed

3. Transformation Approach

Current state assessment, strategy deep dive, future state design, and implementation.

4. Procurement 2.0

Highlights of a best-in-class procurement function including dedicated professionals, clear processes, and advanced tools.


Importance of understanding procurement's value and involving it early in planning and budgeting.