4 Steps to Transforming Procurement at Mid-market and High-growth Organizations
- 5 January 2018
- Written by: kishan
- Category: Procurement
With the myriad challenges mid-market procurement leaders face, the key is to avoid being paralyzed either by the inertia that prevents an organization from taking the next step forward or by taking on too much too soon and overextending the organization in the process. In this situation, the critical first step is automating the core transactional procurement processes that will enable the efficiency and transparency to scale the procurement operations. Here are four key steps to getting started and moving forward in your journey of procurement transformation.
- Getting Started – Scoping the Solution
Automating transactional procurement requires a focused approach on the basics – what does it take to efficiently onboard suppliers and enable end-users to make compliant purchases from approved, contracted suppliers with requisitions, purchase orders and invoices processed in the most efficacious way.
- Getting Greenlighted – Building the Business Case
A solid business case justification will be a pre-requisite for obtaining executive approval and budget for the project. A realistic assessment of the current state and desired future state will demonstrate the opportunity derived from closing the performance gap that is preventing the organization from attaining world-class levels.
- Getting to It – Fast Track the Implementation
Doing the basics right means adopting best practices instead of a “clean sheet” approach. Mid-market organizations often don’t have the time and resources to consider every nuance and customize every process step along the way. The key is to leverage, “out-of-the-box” best practices that quickly and efficiently get them from Point A – their current state – to Point B – the desired future state, within an accelerated timeline.
- Getting Strategic – Plan for the Next Phase in the Transformation Journey
By taking the first critical step of the transformation journey – automating core transactional procurement processes – you can now re-allocate a higher percentage of FTE resources to more strategic activities such as Category Management, Strategic Sourcing, Supplier Performance and Risk Management, and Financial Savings Management. The strategic procurement staff engaged in these pursuits will need to have state-of-the-art tools to provide them with the analytics and insights to drive the strategic procurement agenda.
Knowing the challenges commonly faced by mid-market and high-growth procurement organizations and taking the steps mentioned above to alleviate the challenges will lead today’s procurement teams to superior performance and open new avenues for cost savings.
About The Author:
Rohitkumar Nair is Associate Director Marketing at Zycus Inc., a leading provider of Source-to-Pay automation solutions. With close to 10 years of experience covering multiple facets of marketing in the IT & Health Care domain, Rohit currently leads the product marketing initiatives for the Procure-to-Pay solution suite at Zycus Inc. Rohit has an MBA in Marketing from IBS Hyderabad and a Master’s degree in Microbiology from Mumbai University, India.