Creative Procurement: 5 Game-Changing Strategies to Unlock New Value
“Creativity is seeing what everyone else has seen and thinking what no one else has thought.” – Albert Einstein
In the face of unprecedented uncertainty in the global procurement and supply chain market, leaders must unleash their ingenuity. Navigating complex challenges calls for innovative solutions that push the boundaries of traditional methods and prioritise resilience and sustainability. It’s crucial to consider the social and economic factors impacting the supply chain, including changing consumer demands, geopolitical dynamics, and resource availability.
In our latest Insights, we delve into the untapped potential of creativity in the procurement function. Traditionally, procurement professionals have been cautious about incorporating input from creative teams, fearing a lack of cost control and production feasibility. However, creativity in procurement is the non-traditional application of processes, technology, or approaches that, when validated, achieve specific near-term objectives or long-term positive effects. Embracing creativity in business operations, including procurement, can yield significant benefits. As we strive for continuous improvement, evaluating and implementing innovative ideas that emerge from creative thinking is essential.
The benefits of applying creativity are evident at both micro and macro levels. At the micro level, creativity yields unique solutions for specific procurement problems. This can include innovative pricing methodologies, integration of new workflow technology, or exploration of alternative manufacturing processes to achieve specific objectives. These “a-ha” moments can lead to cost savings and improved delivery timing. At the macro level, creativity in procurement enhances an organisation’s supplier relationship management practices, spend categorisation, and talent attraction capabilities.
By embracing creativity, procurement professionals can unlock new possibilities and drive meaningful change in their organisations. Join us as we explore the transformative power of creativity in procurement and its potential to revolutionise the industry.
Understanding the power of applying creativity in procurement
Streamlining and optimising procurement processes can identify opportunities for automation, digitisation, and workflow improvements. This approach allows companies to evolve, adapt quickly, and strengthen new product development, risk management, and market intelligence capabilities. Key areas in Procurement that benefit from a creative mindset include:
1. Enhanced sourcing strategies
Enhancing sourcing strategies through creativity can result in improved supplier relationships, cost savings, and value generation. By fostering innovation, thinking freely, and exploring new possibilities, procurement can identify alternative suppliers, negotiate better-improved contract terms, and promote sustainability and social responsibility. Moreover, optimising negotiation and communication skills tailored to the parties and objectives can lead to mutually advantageous solutions, driving enhanced sourcing strategies.
Proven Approach: Expand your sourcing through research and networking
Enhancing sourcing strategies through creativity can result in improved supplier relationships, cost savings, and value generation. Procurement can identify alternative suppliers, negotiate better contract terms, and promote sustainability and social responsibility by fostering innovation, thinking freely, and exploring new possibilities. Moreover, optimising negotiation and communication skills tailored to the parties and objectives can lead to mutually advantageous solutions, driving enhanced sourcing strategies.
2. Improved procurement and supply chain innovation
Improved procurement and supply chain innovation through creativity, involves streamlining processes through automation, digitisation, and workflow enhancements to accelerate decision-making and boost overall efficiency. Traditional thinking may focus only on reducing material, labor, and manufacturing costs. Additionally, ongoing process improvement, driven by innovative approaches and learning from successes and failures, enables procurement teams to evolve and retain competitive strategies in a rapidly changing business landscape.
Proven Approach: Create cost-savings through process efficiency
Assess the overall cost in the lifecycle, from product development to manufacturing. Consider exploring avenues to reduce the upfront process burden, such as incorporating workflow software to optimize the process and costs. This can benefit both the supplier and the end customer.
3. Enhanced product development
Creativity in procurement plays a crucial role in driving enhanced product development by strengthening the process improvement, risk management and market intelligence (MI). Through engaging suppliers early and continuously throughout the product development cycle, procurement professionals can leverage their expertise and ideas to create innovative products or services that stand out in the market.
Collaborating with internal creative teams and involving multiple providers in generating product prototypes expands the range of options for final production. This approach ensures a diverse pool of ideas and maximises purchasing leverage, leading to more efficient and successful product development.
Proven approach: Engage manufacturers to optimise processes and reduce spend
Procurement teams can engage their manufacturers to integrate manufacturing processes over time to reduce cost. In the near-term, new specifications may require separate steps, but over time become a new baseline and candidate for being integrated into existing processes.
Leadership Best Practices: Embracing Creativity in Procurement
To unlock the benefits of creativity, it’s crucial to cultivate a culture that fosters collaboration and creativity at all levels. ProcureAbility leaders play a pivotal role in leading their peers when adopting these new practices. Here are five key best practices:
Revamp your recruitment process:
Procurement talent leaders can help to integrate creativity by seeking candidates with experience in problem-solving and creative environments, such as product design or content delivery.
Champion creativity internally:
Leaders should acknowledge and leverage the power of creativity to captivate clients, deliver results, and draw in new talent while upholding the fundamental principles of procurement. These instances can inspire internal team members to enhance their current skillset. Providing continued education, industry event opportunities, and industry partners, is central to continued improvement of these skills.
Promote creativity externally:
Additionally, capturing these examples of key successes and lessons learned in the form of eminence (blogs, case studies, podcasts, industry engagements), etc., can help equip the broader procurement community with the necessary resources to achieve the same results.
Adopt innovations:
Leaders should be willing to explore new innovative technologies, strategies, partnerships, etc. to continue to deploy procurement to drive ROI.
Strengthen Attributes:
When effectively applied, creativity can improve practices for Supplier Relationship Management, overall sourcing strategy, value measurement and negotiations.
As procurement teams face mounting challenges, the strategic application of creativity, coupled with procurement acumen, can yield impactful solutions to specific business problems. Moreover, by infusing creativity into the recruitment of procurement talent and nurturing supplier relations, the procurement function can significantly enhance its impact within a large organisation. Expert, third-party service providers can also help you identify new sources of value creation through creative approaches, thinking, and strategies.
This article was written by Kathleen Pomento, Chief Marketing Officer, ProcureAbility.
ProcureAbility, a Jabil company, is the industry-leading provider of procurement services. We offer advisory, managed services, digital, staffing, and recruiting solutions. For more than 25 years, we have worked across industries helping procurement teams be more strategic and forward-thinking, driving value and achieving significant cost savings along the way. We combine leading-edge methodologies, analytics, AI-driven market intelligence, and industry benchmarks with our fully integrated flexible and customizable service delivery model.
