What is the 'Cure' We Should Be Focused on? People, Processes, and Technology
There are a lot of different types of problems across organizations (shocker, I know) , but there are always underlying themes. Problems tend to differ based organizational maturity, departmental goals, personnel, spend levels; but, there are some issues that are inherent to the industry.
So are what are some of the areas we should prioritize in 2020? Here’s my take along with a few other industry experts. All with the three same themes: People, Processes, and Technology.
- Bridging the gap of the “silo mentality” across the organization
- Become better business partners for internal customers
- Improving how we view and implement change management
- Finding the right team with finance, marketing, analytical, etc. backgrounds
- Re-thinking and changing out of date policies and procedures
- Addressing the hard to reach areas: maverick spending
- Provide clarity and support the entire source to pay processes
- Becoming ingrained with the budgeting process
- Finding and implementing the right AI technologies
- Tracking and managing savings (accurately)
- Using best in class e-procurement technologies
Check out other Blogs for Best Practices
I am not the only one who thinks this way. Check out the article (Link ) and graphic below from McKinsey and Company. These powerful macro-level insights, have mirrored exactly what I’ve seen at a micro-level / organizational view.
“Since 2011, indirect spend has been growing by an estimated 7 percent per year globally. Even so, many organizations fail to give indirect categories the attention they deserve.
Common challenges are apparent across industries. Spending is often fragmented among multiple locations, business units, and categories, making it hard to identify and capture enterprise-wide savings opportunities. Leaders of indirect-procurement functions typically lack sufficient clout within the organization to obtain the technology and talent they need. And most companies do not have mechanisms to monitor indirect categories and reflect their performance on financial statements.
To overcome the challenges, companies need a new vision for indirect procurement that combines cutting-edge tools and practices, as well as traditional approaches to category management, to address fundamental issues relating to processes, capabilities, and data.”
April 2019, Article, McKinsey & Company: By By Pierre de la Boulaye, Mauro Erriquez, Manuel Gener Bago, Patricio Ibanez, Raul Santos, and Alfredo Vaghi
Having the fundamentals for Category Management will just be a
starting point for success in 2020, organizations will need to do more to reach best in class solutions.
“Inputs to a changing procurement universe
The first step in the journey to 2020 will be to fully
understand how the procurement landscape is
shifting around us, often more radically and quickly
than we might first imagine. Even in the past year,
procurement leadership uncertainty has increased
across sectors at a rapid pace. A Deloitte perspective
from the Chief Procurement Officers (CPOs) of
today shows the growing uncertainty they face,
…In 2020, company leadership will likely look at
procurement not as a group that focuses on sourcing
raw materials, goods and services, but rather as one that
sources ideas. Creativity will involve engaging stakeholders
in new, innovative ways (not just delivering new
capabilities to the business through external resources).”
Best Practices for 2020 – Related Articles:
- 10 Best Practices for 2020 – Zycus
- Procurement in 2020 – Gartner
- The Key Trends for 2020 – CIPS
- 10 best practices you should be doing now – Supply Chain Quarterly
- How to Stay Ahead of Trends – Scout
- Shifting the dial – McKinsey
- Digital supply networks strengthen procurement strategy – Deloitte
- 4 Major Trends to Watch for in 2020 – Future of Sourcing
Would you rather watch a video than read a blog? Then check out more video blogs from Ms Category Management 👉🏼 Here
Would you rather listen to a podcast than a blog? Then check out the podcast links for Ms. Category Management 👉🏼 Here
One thought on “Putting the “CURE” back in Procurement in 2020”