Organisations operate in a complex and dynamic environment which is always evolving. Sometimes it is necessary to bring about procurement transformation, but it is imperative that you manage this change optimally to ensure business success. It goes without saying that change is never easy. However, businesses can reap significant benefits if they plan and execute the process with care.
What is procurement transformation?
The term refers to change management that places emphasis on strategies to bring about vital and long-term improvements in processes, activities and relationships related to sourcing and supply chain management.
Organisations should realise that this transformation not only aids cost reduction, but it also helps employees, as it creates new opportunities for them to improve their skills and take on more responsibility in projects that contribute meaningfully to the organisation.
How to deploy procurement transformation
Understanding this transformation has proved problematic to some organisations, leading to problems in its implementation. However, if leaders and decision-makers understand the issues that arise due to organisational change management, they will be able to mitigate and pre-empt these issues to ensure seamless implementation.
Here are some of the ways organisations can implement change in their procurement and supply chain management:
Treat it with urgency
Analyse the market and competition to identify existing and potential crises and major opportunities.
Create a guiding team
Empower a group of decision-makers from all levels to lead the change, encouraging the sourcing department and other allied departments to work in a cohesive manner.
Have a vision
Organisations should have a collective conceptualisation of the change and develop strategies to make that vision a reality. The concerned personnel should be informed so that they can be an integral part of the process.
Analyse obstacles that hinder progress and take measures to remove them. This entails eliminating and altering systems, structures and processes.
Have short-term goals
Create a plan with short-term goals and reward employees who are involved in the accomplishment of positive objectives. This will motivate others to develop as agents of change.
One of the key barriers facing the implementation of sourcing transformation is a lack of transparency and communication among employees. Leaders should work to overcome this barrier, as a comprehensive and cost-effective procurement strategy ensures competitive advantage and long-term sustainability.
Ed founded Odesma in 2014 with the explicit intent of creating a new kind of procurement consultancy founded entirely on cloud principles. Deploying best-of-breed subject matter experts alongside the best on demand technology to deliver rapid and effective change for customers.