Conventional Procurement Transformed To Deliver More Value
Conventional procurement is dead—and if you continue to rely only on yesterday’s practices, you’re handing competitors a significant advantage, and ultimately, putting your business at risk of becoming obsolete.
Procurement can no longer be solely focused on managing supply and containing costs. Today’s procurement teams needs to drive profitability, improve margins, operate a more efficient and connected supply chain and generate tangible value that meets the strategic needs of the business and its stakeholders, customers and suppliers.
Operating at this level is not easy. Successful procurement transformations require an organizational shift away from conventional practices and an investment in unlocking the power of procurement. The shift needs to start with the executive team, and grow all the way to the buyers, category managers, internal stakeholders and suppliers.
The differences between the BravoSolution approach and conventional procurement practices are significant:
1. Primary driver: efficiency
2. Procurement strategy is reactive to organization, market and budget needs.
3. Procurement service and delivery is scattered; lacks long-term focus and alignment with business objectives. Focus is on one-off sourcing events and procurement initiatives.
4. Procurement acts as the middle man – negotiating deals and mediating disputes between buyers and suppliers.
5. Extremely focused on internal spend; lacks supplier transparency and data; limited visibility into global supply chain.
6. IT investments in procurement viewed as cost center; low employee adoption of procurement tools, resulting in low contract and spend compliance, poor ROI.
7. Tactical approach to procurement; departments held back by skill gaps and knowledge inefficiencies. Procurement operates as backroom function.
8. Focused on reducing risk; afraid to take innovative, different approaches.
9. Suppliers viewed as tactical relationship.
1. Primary driver: effectiveness and value creation
2. Procurement becomes a vital business function — influencing organizational direction, strategy, brand, profits and growth.
3. Extreme focus on business goals; all procurement decisions are optimized for long-term value creation. Procurement influences the entire supply chain from start to finish.
4. Procurement redefines the buyer and supplier relationship – taking a holistic view on how to create meaningful value for all parties, and influence innovation.
5. Visibility throughout the entire supply chain; data enables highly-skilled workers to make informed, smart business decisions that produce positive business outcomes.
6. Procurement technology viewed as strategic investment; drives real ROI for procurement, key stakeholders, suppliers and shareholders; platform is easy to use and intuitive; strong adoption across the board that leads to better spend management.e, poor ROI.
7. Total organizational alignment, focus is on the people: talented procurement staff, working with smart processes, backed by powerful technology, executive support and experienced consultants; procurement, sourcing and supply chain knowledge valued across organization..
8. Opportunistic; optimizes every sourcing scenario to weigh real procurement outcomes; Innovative, flexible and agile, with a focus on value creation, not risk reduction.
9. Facilitates a true buyer and supplier partnership that maps to the P&L, balance sheets and EPS goals of each party.
The BravoAdvantage suite empowers organizations to advance beyond conventional procurement practices to unlock the true power of procurement. The results detail the organizations that work with BravoSolution outperform goals, competitors and the market.
Procurement transformations are not easy, and a shift of this magnitude doesn’t happen overnight. In almost every case, there is a major gap between where you begin the sourcing journey, and where you end. That is why technology is only our starting place. The BravoSolution commitment is to provide exceptional people, powerful tools and smart, cutting-edge processes to ensure you are successful. Learn more about how you can unlock the power of your procurement team here.
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Learn more about BravoAdvantage and how we can help unlock your organization’s hidden value and savings throughout the procurement processes.