Procurement Transformation

Procurement’s role is evolving rapidly from a tactical team focused on cost reduction to a strategic entity driving enterprise-wide value. Enterprises worldwide are asking their procurement teams to play a larger and more strategic role in the overall corporate growth and deliver sustainable business results.

To meet these new expectations, procurement organizations must transform their legacy processes, practices and structures, and align them with the current needs of the enterprise.

Procure.az adopts a holistic approach toward procurement transformation that focuses on building a high-performance procurement organization in the shortest period of time.

Like any transformation program, the real challenge is in the implementation. Organizations often follow the path of building detailed transformation roadmaps and implementation plans, many times using outside expertise, but fail to realize the benefits in the real world. We differentiate ourselves by supporting our clients throughout the transformation journey. In our engagements, we typically run a parallel track of strategic sourcing to help our clients deliver lasting financial results while they build internal capabilities.

To build organization capabilities, we focus on the three key aspects of a procurement organization: strategy, people and process & tools :

 

Strategy

Developing organization-wide procurement strategy aligned to business goals

Implementing a strategic sourcing roadmap for significant savings in the short term while achieving corporate goals

Developing category specific strategies for ongoing category management

 

People

Assessing existing organizational effectiveness and competencies

Designing the right organization structure aligned with the business

Skill enhancement program including training, recruitment and succession plan

Implementing a robust governance and performance management framework including metrics and scorecards

Leading the change management program

 

Processes and Tools

Implementing a procurement support infrastructure – acquiring resources and tools

Assessing and improving processes and policies for all source-to-pay functions

Reviewing technology requirements and implementing best-fit solutions

Our procurement transformation engagements are led by seasoned procurement experts and supported by a world-class infrastructure comprising our sophisticated methodologies, cloud-based procurement software, a rich knowledge base of best-practices, benchmarks and analytical tools and templates, market intelligence capabilities and global reach.

 

Procurement Strategy

Expectations in the board room are rising – and to meet them, enterprise procurement organizations need to innovate, reinvent and transform themselves. This means, taking a fresh look at the current procurement setup and ensuring its alignment with your business objectives today.

We believe in aiming for procurement excellence. So it’s not about being better, it’s about being best-in-class. We’ll help you develop an organization-wide procurement strategy – aligned to your business goals – that’s engineered for success.

What can’t be measured, can’t be improved. That’s why, at Procure.az, we do first things first – determine your procurement organization’s performance to know where it stands currently and where it needs to go, based on your business vision and objectives.

We benchmark your procurement organization, processes and technology against best-in-class practices using relevant KPIs and then develop a roadmap for transition.

A key objective of every procurement organization is to derive maximum value for the enterprise by identifying cost reduction, including savings opportunities, wherever possible. We help you identify these opportunities – whether it is a make vs buy decision, low-cost country sourcing, or achieving post-merger synergies from your procurement organization.

All this is backed by a clear understanding of your corporate strategy, market conditions, and consumer demand.

In category planning, one size does not fit all. A focused approach to planning and budgeting lays the right foundation for evaluating opportunities and managing risks. This is even more critical for volatile commodities like raw materials and energy.

We help our clients plan their spending in key categories in the annual budget development process by analyzing market trends and impending price fluctuations. Our market intelligence teams constantly track key markets to anticipate these variances and help you plan accurately.

At Procure.az, we believe sourcing and procurement technology must meet the changing requirements of your business. We help you make the right investments in e-procurement technology, making your sourcing process agile and responsive. We have a set of proprietary, powerful, cloud-based procurement software that can be configured to your requirements.

By leveraging the power of cutting-edge technology, we help you improve transparency and information sharing between regions and across business units.

Our solution combines a laser focus on procurement with an expansive global footprint that leverages top talent from around the world.

 

Procurement Process Design

Efficient and effective processes are a prerequisite for a successful business, more so for a procurement organization. Optimal process design is crucial to cut down sourcing cycle times, achieve transactional efficiencies and derive maximum value.

With increasingly complex supply chains and globalized operations, enterprises need robust procurement processes in place, to achieve the right balance between standardization and flexibility, and to ensure better compliance, control and monitoring. At Procure.az, we typically follow a four-pronged approach towards procurement process design to develop best-in-class processes for today’s procurement organizations.

 

Procurement Process Assessment

We collate all process-related data of your business – activities, technology systems, approval mechanism, time and cost – to see what’s good and what needs to improve.

Our experts map each process KPI and benchmark it against leading practices. We evaluate current tools for effectiveness and identify opportunities for automation or obliteration.

 

Process Re-design

Post process assessment, we develop a “to-be” process that is best suited for your business, considering worldwide best practices. Our experts identify the various financial, technological and people-related change implications, and develop a detailed roadmap to mitigate them. A plan for allocation of additional resources – technology and / or people – is then chalked out.

Finally, a business case is prepared, quantifying the costs and benefits of the new process design.

 

Process Implementation

Even the best designed processes can go wrong if they are not implemented properly. We support our customers throughout the implementation phase. Tools and templates for the new processes are developed.

To ensure smooth migration to new processes, we create a detailed migration plan that includes communication and training programs for change management, with realistic timelines.

 

Continuous Improvement

At Procure.az, we pursue continuous improvement and innovation. So we don’t just stop at creating and implementing the new process design. We work with you to assign process ownership and develop robust Key Performance Indicators (KPIs) to monitor, control and fine-tune the process on a continuous basis. Our experts also create a review mechanism and develop methodologies to help you measure the KPIs and achieve maximum process efficiency.

 

 

Org. Design & Implementation

Our customers trust us to provide them unbiased advice on their procurement capabilities and design an organization that is custom-built for success in the long run. Our approach is built on four key elements that ensure our designs are practical and effective in the real world.

 

Understanding Your Organizational Requirements

Procurement is as much about people as it is about savings. Our experts evaluate the sustainability and effectiveness of your current organizational structure using relevant benchmarks, check alignment with business objectives, determine cross-functional linkages, facilitate effective communication between units, and develop a robust governance model. Through a detailed competency assessment, we determine the current and required competencies, identify the gaps, and develop a roadmap to bridge them.

 

Creating an Operating Model

In business, clarity drives success. We will help you create a dynamic operating model by outlining the roles and responsibilities for your procurement team, with clear work segmentation and accountability. With this, you can precisely determine your workload and manpower requirements, and look for talent accordingly.

 

Developing a Framework for Governance

As procurement organizations expand their boundaries and extend their reach globally, the need for an effective governance model is becoming even more pressing. Our experts develop key metrics for your procurement organization, and create review and audit processes to facilitate continuous improvement.

 

Managing Performance and Building Capability

Successful procurement organizations measure and reward performance. We leverage our experience of working with best-in-class procurement organizations and develop a comprehensive performance management system for your enterprise with role-wise KPIs – an system that fosters performance excellence.

We also prepare a training plan based on your business objectives and chart a career growth path to help you attract and retain top talent from the industry.

And while we do all this, we understand the importance of constant knowledge transfer during such engagements and work in a highly collaborative manner, setting the ground for successful transition to the new ways of working. We help you throughout the change management process through tailored communication strategies, change workshops, training and marketing the change across the organization.