Procurement is a purchasing process that controls quantity, quality, sourcing and timing to ensure the best possible total cost of ownership. Procurement professionals are nowadays key member of firm’s core team and are actively participating in new product development, managing supplier risk and sustainable procurement. Digital technologies are enablers and supporting procurement in this direction. Procurement leads needs to define a clear strategic roadmap to achieve digital procurement.
As you can see from above diagram, a strategic roadmap covers the following steps:
1. Define Procurement Strategy
2. Understand benefits and pitfalls of Digital Procurement
3. Assessment of current stage
4. Select digital tools and partners
5. Define scope of current transformation
6. Get buy-in from stakeholders
7. Implement as per plan
Defining Procurement Strategy
Strategy should clearly articulate the goal of the organisation. It should improve effectiveness, efficiency and sustainability. From the effectiveness perspective, the goal is to reduce price, or total cost of ownership (TCO) and up the revenue. Sustainability means reducing supplier risk, continuously innovate and show agile way of working.