7 common Signs of excellent Procurement Teams

“Excellence is to do a common thing in an uncommon way.” — Booker T. Washington

Excellence, or superiority, is often the goal in corporate organizations. Each and every function, within its own right, strives for excellence and achievement in order for a company to collectively grow, evolve, and thrive. Achieving excellence seldom comes easy. Hardships and roadblocks are to be expected taking the road less traveled towards change and transformation, but without daring to create something contemporary, one often settles for commonality.

A fatal misconception

Procurement’s devaluation in the broader value chain could date back to 1985, and the Value Chain modeling of Michael Porter.

Source: Porter 1985

After many conversations…

In our work at Kodiak Rating, we have the unique opportunity to speak to and collaborate with hundreds of procurement teams and thousands of procurement practitioners every year; often from large, multinational, and global organizations.

1. Budget

Procurement professionals surveyed in the 2019 CPO Rising study responded that limited budgets and lack of modern procurement technologies were the top seen as the top 2 hurdles for achieving procurement objectives between 2020–2022 (CPO Rising 2019).

2. Leadership

Leadership is vital within any team.

3. Experimentation

How does the saying go…?

4. Diversity

Procurement has generally and historically lacked diversity in a global context, within teams and supplier networks.

Source: Procurement Leader 2017

5. Segmentation & Consolidation

A majority of global procurement organizations have a dirty little secret… they have too many suppliers.

Source: Deloitte CPO Flash Survey 2020

6. Procurement with a purpose

Procurement is one of the sole functions in an organization that can truly implement, and realize, quality and sustainability initiatives in the line; considering procurement’s ability to impact the global supply chain network at the supplier level.

7. Transformation Hubs

Excellence doesn’t birth itself.

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