31.7 C
Saturday, January 15, 2022
HomeProcurementA Strategic Roadmap for Digital Procurement

A Strategic Roadmap for Digital Procurement

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.

Diagram created by Saurabh Mani (2019). Background picture taken and modified from https://sethtan.wordpress.com/2018/12/26/a-discipleship-roadmap/

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.

The full content is only visible to SIPMM members

Already a member? Please Login to continue reading.

Saurabh Mani, ADPSM
Saurabh Mani is currently working for Deutsche Bank as Vice President for Strategic Procurement. He is performance-driven, a self-starter, and an entrepreneurial professional with more than 25 years of continuous advancement. He holds the Masters in Business Administration from State University of Buffalo, and is a member of SIPMM. He completed the Advanced Diploma in Procurement and Supply Management (ADPSM) course on January 2020 at SIPMM Institute.

Most Read