One thing that’s glaringly obvious is that procurement is always changing. That’s because technology is rapidly changing expectations, preferences and behaviours. This creates a wonderful world of complexity and potential for procurement leaders.
Solving Business Problems
At ZOOL Global, our goal has always been to empower businesses through intelligent procurement. In other words, we get up excited every day to help shift the reality and perception of procurement into a strategic business driver rather than a back office function.
Transformation is one of those overused business terms. But for procurement to go next level, this requires a new mindset and new thinking to unlock opportunities. This requires a genuine focus on truly understanding the business problems of today and tomorrow.
That’s why we believe in the art of co-creation with collaboration across internal and external stakeholders. We share a dedicated focus on all things procurement… with the user always at the centre, this is about mapping technology with process in a customised way.
Transformation of Procurement
According to recent Deloitte research, there needs to be a radical rethink about procurement. With increasing uncertainty, expanding risks and extending supply chains, the way procurement is viewed as a function and competency must change.
It will be important to gain new knowledge, skills and tools to tackle existing and emerging challenges in a more creative way. This will include embracing new procurement models in order to maintain competitiveness and future viability.
Yes of course, the fundamentals remain the fundamentals and the starting point. But rising to this transformation challenge will be less about mapping out the linear and incremental improvements and more about embracing a new set of capabilities:
- Capability 1: creativity and innovation – sourcing not just things but generating ideas and adding value
- Capability 2: linkage and alliance – playing a role in driving organisational alignment and accountability
- Capability 3: leadership and talent – adding skill development to help transition from service to strategy
- Capability 4: technology and intelligence – creating a nexus of shared information and valuable insights
So accelerated change demands accelerated thinking. According to Deloitte, the four business outcomes for procurement will continue to be financial performance, risk management, supply chain control and customer / stakeholder connection.
This is much more than just changing the procurement function from within, it’s about focusing on the overall business value that procurement can deliver. Ultimately, in order to succeed, the procurement function must earn the trust of the business.
Real Insights from Customers
The big trends often reported typically focus on areas like cloud technology, agile procurement, supply chain collaboration, artificial intelligence, sourcing ethics and data analytics. So, the consistent threads are increasing effectiveness and driving efficiency.
At ZOOL Global, we continue to engage deeply with procurement leaders across both government and business to capture key insights. In terms of procurement solutions, the major customer problems to be solved have been identified as:
- Simplify and centralise all procurement
- Improve transparency and compliance
- Empower employees and drive efficiency
- Enhance management of external partners
- Deliver competitive tension in real time
- Optimise ROI across different categories
- Take control with tracking and reporting
- Boost internal and external accountability
The strong recurring theme is around regaining control in an increasingly complex internal and external environment. There’s a stated desire to shift away from manual and fragmented procurement to a more real time and insight driven approach.
When it comes to procurement management, leaders require a solution that’s highly effective and user friendly. From a business perspective, this must work to both reduce risk and add value, supported by the analytical firepower to prove ROI.
Yes, procurement is always changing and the rate of unprecedented change is set to continue. The upside is that there has never been a more exciting time! So, when it comes to intelligent procurement, what are the things that you believe are the most important?