There are many great examples of procurement transformation that create tremendous value. However, for all the star players in the upper quartile of performance, the majority of organisations are playing catch up. So how can they accelerate into the leadership space and what are the common challenges that a Chief Procurement Officer (CPO) faces in getting there?
For many, one of the biggest challenges is how to get their arms around a diverse purchasing environment. This often means engaging with personnel dispersed across regions, multiple systems with disorganised data, disaggregated Suppliers and Supplier records to name but a few. How can all these ‘dis’s’ be brought into a unified, manageable whole?
Spend analysis is a common starting point. But, even in 2017, this remains challenging as 90% of organisations report a combination of insufficient resources, manual data processing and variable quality data. Have a read through our Procurement Trends Report for more information.
So CPOs are faced with a chicken and egg conundrum – needing to drive spend control but not having enough visibility to target it effectively. One solution is to capture spend through a marketplace and then use the visibility to right-size and improve. Adopt, then adapt.
This sounds simple but success depends on how developed your ecosystem of processes, systems and Suppliers is. Science Warehouse has worked with dozens of organisations on digitisation programmes and has developed a spend assessment diagnostic from this experience. This helps organisations identify their state of readiness for digitisation.
Our experts work with organisations to map their readiness across two key dimensions – process maturity and technical maturity. This clearly identifies the key steps to adoption and barriers that need to be addressed in order to digitise your procurement function.
The evaluation also benchmarks performance on a range of criteria against our database of research across several hundred organisations. This maps factors such as strategic alignment, spend under management, data maturity and procurement objectives against peer organisations.
The final report provides CPOs with a guide on the critical steps to digitisation.
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