As all specialist procurement recruitment agencies can testify, procurement jobs today bear little resemblance to the lowly back-office bean-counting exercise they once were, having morphed into a highly strategic role – but too many organisations are failing to capitalise on this and develop ongoing procurement transformation because of prevalent myths and misapprehensions about investing in it, The Strategic Sourceror has claimed.
The result is a form of self-deprivation borne of ignorance about the cross-functional way in which today’s procurement practitioners, from permanent staff to procurement and supply chain interims, build cross-departmental collaborations and improve organisational efficiency and productivity.
The Sourceror sets out five widespread myths about the very procurement transformation that can enhance organisations’ business prospects immensely – and counters each with facts.
Myth 1: Only failing organisations undergo procurement transformation
Fact: Companies of every size and every stage of maturity – including world-class firms – have benefited significantly from the procurement transformation initiatives they have undertaken.
Myth 2: Procurement transformation is really an empty exercise of change for change’s sake.
Fact: A major outcome of successful procurement transformation projects is the identification of significant pain-points and areas for improvement while appreciably enhancing what the firm already does well.
Myth 3: Procurement transformation will end in a major loss of procurement jobs and other roles through automation
Fact: Automation results in evolution, not elimination. It enables firms to employ their existing resources as effectively as possible.
Myth 4: Procurement transformation is too narrowly focused and ignores other business units.
Fact: The outcome of successful procurement transformation initiatives is the exact opposite: they facilitate new collaborative relationships between different business units, thereby promoting joined-up thinking and better collective overviews, and create a far more coherent organisation. All stakeholder groups benefit from properly conducted procurement transformation initiatives.
Myth 5: Procurement transformation initiatives are simply too costly to make business sense.
Fact: The evidence strongly indicates the opposite: successful procurement initiatives usually end up paying for themselves. But there’s only one way to find out.