From Tactical to Strategic: 5 things you need to consider

Oct 28 2022, 10:24 AM4 min read

As your procurement function goes through a transformation, it is essential to consider what is needed for this evolution, and how you want your colleagues to view your contributions. To be recognised and valued as a strategic business partner, versus seen as tactical order takers, you will need to undertake an internal rebranding effort.

ProcureAbility – who has partnered alongside some of the most innovative procurement teams for more than 25 years to design bespoke, scalable, and outcomes-based procurement solutions – has some important advice you need to consider before transitioning your company’s internal procurement function.

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Here are the top five considerations you should keep in mind when shifting your company’s internal procurement function from tactical to strategic:

1. Communicate the changes to everyone in the organisation

Communication is critical to ensure all employees are aware of the positive changes in procurement and the beneficial implications for their teams.

This should be done through a strategic communication plan which targets key internal partners and includes tailored messaging to their interest and involvement. This messaging can be done across a variety of mediums including company-wide memos, emails, and meetings.

It is vital to make clear that these improvements aim to make procurement more strategic in adding value to the business. Communicating these planned changes will make the overall transition smoother for all those involved and reduce employee disruption during this transition.

Remember that you win hearts and minds with each interaction that each team member has with internal stakeholders during the procurement transformation.

2. Ensure employees are aware of available resources

Create a culture of providing the right resources to the right people at the right time.

Ensuring employees know who they need to contact for different requests such as purchasing new equipment, submitting invoices, or getting approval for a project simplifies the process. Ensuring colleagues get the answers and approvals they need promptly helps to improve your procurement organisation’s reputation.

Take advantage of self-service options and documented resources to make the department more efficient. This can include user-friendly online portals where employees can submit requests for various procurement functions and track their progress.

This will reinforce the new brand of procurement, increase the efficiency of the department, and improve morale throughout the entire procurement rebranding.

Also consider creating in-person and virtual ‘office hours’ or designating ‘Centre of Excellence’ experts that people can leverage to ask for help.

3. Eliminate red tape

Reducing the bureaucracy and streamlining the procurement process will make it easier for employees to do their jobs and to see procurement as a valued strategic partner.

By eliminating unnecessary and redundant process steps, you can condense the process timeline, which will reduce the workload of both the procurement department and key internal partners. These efficiencies also increase compliance with the process and avoid having employees that operate outside of the approved process.

This can be accomplished by automating repetitive tasks, simplifying the approval process through authority spend limits, setting clear and defined guidelines, publishing necessary documentation in an easily accessible location, simplifying the approval process, and creating a culture of continuous process improvement.

By removing the red tape during the procurement rebranding process, the entire organisation will be able to work more efficiently and effectively.

Keep in mind the overarching strategic goal of making it as easy as possible for internal business partners to come to procurement and go through the established channels. To achieve this, it is critical to bring the entire organisation on the journey.

Once you have made changes to the procurement process, ensure all employees know how the new system works and its benefits. Hold formal training sessions so that everyone has a clear understanding of the new procedures and to answer any outstanding questions.

Employee feedback should also be encouraged outside of these formal training sessions to quickly identify and rectify any potential problems with the new system. This education will help ensure a smooth transition.

4. Be flexible

If you receive feedback or comments, make sure to address those with the individual who raised them and to incorporate them into the new process if it makes sense.

In this way, you allow your internal stakeholders to feel heard and part of the process.

5. Be patient

The process of rebranding procurement within an organisation can be challenging and extended. It may take months or even years to change how employees see procurement and to have them consider procurement a valuable strategic partner.

However, with patience and perseverance, the value of procurement will be seen and appreciated.

During this rebranding time, organisations should strive for excellence and always remember that the end goal is the collective success of the company.

Procurement organisations of the future make continuous incremental progress, consider all feedback, and communicate effectively with the goal of adding consistent, strategic value to the business.

To learn how to transform your organisation into a Procurement Organisation of the Future, read more at ProcureAbility.com.

Find more Innovation news, insights, and best practises at Procurious.com.