Tag Archives: tactical

Defining Procurement 100%

Organic, original, challenging and aspirational – is this what procurement means to you?  Maybe it should.

In a recent conversation with a business partner where we discussed all-things procurement, a new notion came to mind. The more we talked about it, the more it resonated and the more tangible it became. The concept, as simple as it sounds, embodies a holistic vision of what procurement professionals must strive for.  We called it “Procurement 100%”.

“Procurement 100%”, is not the same as “100% procurement”.  It’s a concept that recognises everything an organisation does is not purely focused on procurement, but that procurement must operate at 100% to enable the organisation to achieve its goals. 

Procurement  is 100% Organic

Procurement 100% implies that procurement is alive and complex, and that significant effort is required to achieve it. All the moving pieces of an organisation will influence procurement and we must be forever diligent to maintain performance.

Procurement 100% is a moving target, is a relative concept that needs to be assessed and gauged within its ecosystem, as it is no stranger to everything else within a company. It is a set of goals that defines and redefines itself constantly as risks become real and resilience is challenged everyday.

Procurement 100% is both the exemplification of sustainability, and its susceptibility to external variables. 

Procurement is 100% Original

The most appealing thing about this concept is that the definition of Procurement 100% will be unique and different for every organisation.  Each company must think about what 100% means to the broader vision of the organisation and devise a path and a plan against it to achieve it. 

Only one rule applies. Procurement 100% is about achieving full operational transparency, enabling process compliance and capturing value at all times, no compromise. 

A procurement function that operates at 100% would be world class  – a function that balances process, people and technology in just the right way to enable the most ambitious goals of an organisation without wasting energy. It’s about making the right way to buy the easiest way of buying.

No procurement function is the same, or requires the same energy and resources to reach its full potential. Not every organisation will need the same set of tools, people and expertise in house in order to perform at a high level.

Procurement is 100% Challenging

Procurement 100% is an exclusive club, because it demands mastery of the competing forces of strategic vision and operational functionality. Many companies have great vision, but lack the on-the-ground resources to execute their plan. Others have strong apparatus, tools and operatives, but fail because there is no strategic direction. Everything gets tactical, too granular, and they are unable to change mindsets.

To me, the greatest ideas come from defining, embracing and deploying out-of-the-box approaches that make us a little nervous, where failing is done quickly and learnings are applied before the fear of losing again, anchors us more to our comfort zone where all is safe, where procurement is still tactical at best.

Procurement is 100% Aspirational

Procurement 100% gives everyone  a goal, a vision and mission to attain.  It speaks about something that must, and can be, measured. Anything under 100% means there’s work to do, everything at a 100% means it needs to be monitored.

I cannot define what Procurement 100% looks like for your organisation, but I can tell you that I don’t know a single entity who has Procurement 100%.   It’s not that they don’t strive for excellence and having a high performance procurement function.  Those who acknowledge the value of 100% Procurement are the same visionaries who keep raising the bar just before its reached.

What I can tell you is that in the holy trinity of procurement – people, process, and technology – each make up for exactly 33% of your winning formula. Achieving the right balance is the secret ingredient for you to figure out to unlock the full potential of your procurement function. 

Join us for the Global Big Ideas Summit next month to share what that 1% looks like for others.

Procurement Innovation – What’s Next?

Procurement has seen some revolutionary changes over the last two and a half decades. From manual processes to powerful P2P Suites, there is no denying that procurement is becoming more innovative and tech savvy. But as a whole procurement tends to lag behind other professions – it’s time to lead the way for innovation, but where do we go from here?


Technology is driving industry forward at an exponential rate, globally. It’s hard to think of an industry that hasn’t adopted a new technology, at least to some extent, in the last several years. Technological breakthroughs are changing the world over, both from a consumer perspective, but also from a business one. From smart phone companies using fingerprint scanning and facial recognition to car companies implementing park-assist, adaptive cruise control, and in some cases, even self-driving capabilities. This is truly a world driven by innovation, and most industries and business sectors are investing heavily to that end. But what is procurement doing to keep up?

Where We’ve Been

To answer that, first it is important to see how far the profession has come. Although it has taken longer than other markets – the progress has been remarkable.

·   Manual Processes – Like most, this is what dominated the industry for a large period of time. Everything was done manually, from drawing up contracts, to sourcing and purchasing materials. This was quite a time-consuming process at a time when procurement lacked the complexity of today.

·   Emails & Spreadsheets – As technology began to become more mainstream the manual communications started to give way to emails, no longer requiring procurement professionals to travel onsite as often. The use of spreadsheets began to build the framework of an organizational system with excel becoming the main database of choice for many in procurement.

·   ERPs – Enterprise resource planning (ERP) is a software that handles business process management it allows an organization to use a series of integrated applications to control and automate many functions related to technology, services and human resources. This is one of the most widely adopted pieces of technology used in procurement today.

·   S2P Systems – This is the current cutting-edge procurement technology. A good S2P suite can bring cost savings, efficiencies and data visibility to your business. Our source-to-pay (S2P) platform, JAGGAER ONE, is a comprehensive suite that automates, optimizes and provides insights across the source-to-pay spectrum. Integrating seamlessly with your ERP, JAGGAER ONE can provide data transparency and visibility, while giving access to a powerful suite of end-to-end supply chain and sourcing solutions.

Procurement is at a Cross-Roads

Procurement has long been a cost-focused profession, largely relying on siloed processes and teams, taking a reactive and tactical approach. And, at one time, that was all that procurement needed to do. But it is now time for procurement to move into a new role – one that takes charge of the business and leads the way, becoming an integral part of the overall business strategy.

I believe that procurement professionals around the world stand on the threshold of a new age. The old paradigm of cost reduction, being reactive and only focusing on purchasing is drawing to a close. In this dynamic, complex and disruptive era, procurement leaders and experts the world over are searching for a secure, successful future.

With technology like artificial intelligence (AI) and robotic process automation (RPA) becoming more mainstream, the applications for procurement are virtually limitless. Technology like JAGGAER’s Smart Assistant, which is powered by AI, is one such possibility. This conversational platform designed for procurement is a powerful tool, which will eliminate much of the tedious and manual processes that still plague the procurement profession today. AI will be a driving factor in the development of the procurement profession.

Where We’re Going

The result of all these technological advances in several years’ time will be autonomous procurement. As I’ve written in a previous blog “autonomous procurement is a platform with embedded intelligence, but a system that also continues to build on those capabilities to automate the full source to pay process without human interaction. However, this will happen only in instances where human input isn’t necessary or desired, such as repetitive or time-consuming tasks”.

It is incredibly important to remember that autonomous procurement is not meant to eliminate human input or the role of procurement professionals. The end goal here is to augment people, freeing up time to focus on value adding tasks and strategic thinking. Human insight is crucial in business – but this is all about using technology to eliminate mistakes, monotony and cut out repetitive patterns. The future platform will assist you at every step of the source-to-pay process and over time it will manage more & more complex activities autonomously, so we can focus on doing strategic analysis to unlock new opportunities.

The procurement leaders of the future will need to combine strategic thinking, along with an analytical mindset. Leaders are crucial in today’s times, especially with the rise of AI, algorithms and automation. In order to stay ahead of the curve procurement professionals will have to evolve – becoming more data-driven and strategic, because that is something that will always require a human touch. 

To find out more about where procurement has been, where it’s going, and what you can do to stay ahead register for our webinar with Gartner, Deloitte and Blue Shield.

Where do you think procurement is headed? Let us know.