How can procurement become the best version of itself?

The procurement function has undergone a sizable transformation in recent years, moving beyond a mere cost-saving function to having an important role in an organisation's strategy. While traditional frameworks have provided stability in a time when that has been in short supply, procurement now has the opportunity to redefine its role even further by fostering innovation, prioritising sustainability, and developing strategic partnerships to drive value creation throughout the supply chain. Embracing this transformation will secure procurement's position as a key contributor to organisational success for years to come.

Fostering Innovation

Procurement can play a key role in fostering innovation by working with suppliers to develop new products and services. This can be achieved through a number of ways, such as:

• Identifying and engaging with innovative suppliers: Procurement teams can look for suppliers who are at the forefront of their industries and who are investing in research and development.

• Collaborating with suppliers on new product development: Procurement teams can work with suppliers to co-create new products and services that meet the needs of the organisation.

• Sharing innovation best practices: Procurement teams can share best practices for innovation with other parts of the organisation.

Prioritising Sustainability

Sustainability is becoming an increasingly important issue for businesses. Procurement teams can play a role in helping organisations to become more sustainable by:

• Sourcing from sustainable suppliers: Procurement teams can look for suppliers who are committed to sustainability and who have strong environmental, social and governance (ESG) practices.

• Working with suppliers to reduce the environmental impact of products and services: Procurement teams can work with suppliers to identify ways to reduce the environmental impact of the products and services that they purchase.

• Encouraging innovation in sustainable products and services: Procurement teams can encourage suppliers to develop new products and services that are more sustainable.

Developing Strategic Partnerships

Strategic partnerships can be a key source of value for organisations. Procurement teams can develop strategic partnerships with suppliers by:

• Building strong relationships with key suppliers: Procurement teams can build strong relationships with key suppliers by working collaboratively and by communicating openly and honestly.

• Sharing information and expertise with suppliers: Procurement teams can share information and expertise with suppliers to help them to better understand the organisation's needs.

• Aligning the interests of the organisation and the supplier: Procurement teams can work with suppliers to align the interests of the organisation and the supplier so that both parties can benefit from the relationship.

By embracing these trends, procurement teams can play a vital role in helping organisations to achieve their strategic objectives.

The procurement function is no longer just about cost savings. It is now a strategic function that can play a vital role in helping organisations to achieve their goals. By fostering innovation, prioritising sustainability and developing strategic partnerships, procurement teams can help organisations to create value and to gain a competitive advantage.