Procurement Transformation must follow a holistic approach to improving all aspects of the procurement organization in order to achieve results and ensure long-term sustainability. Denali Group will discuss the five most common mistakes that organizations make with Procurement Transformation, including:
1) Ignoring the “Soft Side” – Don’t overlook the people/cultural side of the organization. Communication and change management can sink even the best efforts.
2) Thinking That It’s Just About Sourcing - Some transformation efforts are just glorified sourcing projects. True Procurement Transformation initiatives include a review of category management, sourcing execution, transactional procurement, supplier management, business unit engagement, and supporting technologies.
3) Focusing on the Savings alone - If you want true Procurement Transformation – be sure to set savings targets – but, more importantly, develop universal, long-term operational goals and objectives.
4) Trying to Transform Everything – Not every process in your organization needs to be transformed, so start with an assessment and prioritize next steps to establish a realistic and achievable approach.
5) Charging ahead without a Clear Vision –Spend time up-front with your leadership team to clearly articulate what desired outcomes look like.
Denali Group presenters John Evans and Conrad Snover will share best practices and lessons learned to help attendees develop an approach that can accelerate their own transformation. Denali Group’s Fast Track Procurement Transformation Process allows for flexibility and calls for collaborative efforts that are focused and prioritized.
The result of a successful Procurement Transformation is that it can provide tangible savings - usually 10% to 20% of spend under management. It also creates sustainable results, which can help to ensure the organization’s success into the future