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What's holding back the procurement function?

Miscommunication of what transformation means is just one of the areas holding back procurement change. Getting closer to IT, finance and other business functions could make a real difference to the success for procurement.

The KPMG Powered Enterprise team recommends five ways to set your procurement team up for change.

  1. Stop misunderstanding what transformation means
    Often, the right measurements and metrics are not put in place up front in digital projects—but this is a critical step in aligning viewpoints of what success means. It's important to have a shared vision with clear outcomes that everyone can stick to.
  2. Start reacting to political and business change
    New and changing regulatory pressures, global political change and uncertainty, and growing consumer expectation all make for a more complex role for procurement. This time of change gives more reason than ever to adopt a more efficient and modern procurement approach that can navigate — and even profit — from these changes.
  3. Start progressing beyond the cloud
    Adopting a cloud platform is the first step. But it is only the first step. Deploying cloud and then stopping at that is akin to doing nothing at all.
  4. Stop ignoring the digital talent deficit
    Procurement might be missing the digital skillsets needed to take the function forward using evolved technology, solutions and processes. Dedicated digital specialists are required. With supply a challenge in the sector, consider incentives to encourage some staff to retrain where possible.
  5. Start focusing on the data
    It’s often forgotten about, with poor data only discovered halfway through transformation—when it’s too late. It’s vital that procurement understands where all their data comes from, and where it sits in the business. Cleaning that data before any big business change project is critical. And, as mentioned previously, the right role is required to do this. Define who is responsible for taking care of data.

By addressing these five key areas and mapping out an end-to-end process change project, based on a pre-defined methodology and clear end-state, the procurement function can start to engage in more strategic conversations and bring more value across the business.

To find out more read the ebook below or explore our Powered Enterprise pages.

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