As the maturity of the Procurement organization increases there is a clear move to a more centralized operating model to ensure economies of scale and skill. However, there is a risk that this model increases the distance to the actual business.

A Procurement Done Right functions of today needs to balance the instituted cost focus with possibilities to leverage the supplier base to add value. A Category Management approach is a proven methodology to use for cross-functional teams to address spend categories with the objective to optimize cost. A more collaborative approach with Supplier Relationship Management is a great way to balance the cost focus with possibilities to drive improvements and encourage innovation.

Digitalization creates two new opportunities for any Procurement function. First to step-up and support the corporate digitalization roadmap and taking clear ownership of supplier relation that support this transformation. Secondly it creates opportunity for the Procurement function to drive Procurement Digitalization that can be used as an enabler, to identify and create value, and to prevent value leakage. A Procurement Done Right function needs to embrace these two opportunities.

One of the most important Procurement capabilities is analytics, from spend analysis to savings tracking, it enables the Procurement function to create transparency that ensures value capture and avoid value leakage. Advanced analytics should provide Procurement Done Right professionals with actionable insight and foresight.