Digitalization creates two new opportunities for any Procurement function. First to step-up and support the corporate digitalization roadmap and taking clear ownership of supplier relation that support this transformation. Secondly it creates opportunity for the Procurement function to drive Procurement Digitalization that can be used as an enabler, to identify and create value, and to prevent value leakage. A Procurement Done Right function needs to embrace these two opportunities.

Companies are facing more challenges today than ever and Procurement can be part of the strategy to handle these challenges. Procurement could play a center role in increasing competitiveness by e.g., mitigating cost increase, securing sustainability targets, enabling digitalization on company or functional level, and ensuring a flexible supply chain. When Procurement is Done Right, the Procurement Strategy is an integral part of and aligned with the overall business strategy.

As the maturity of the Procurement organization increases there is a clear move to a more centralized operating model to ensure economies of scale and skill. However, there is a risk that this model increases the distance to the actual business.

A Procurement Done Right functions of today needs to balance the instituted cost focus with possibilities to leverage the supplier base to add value. A Category Management approach is a proven methodology to use for cross-functional teams to address spend categories with the objective to optimize cost. A more collaborative approach with Supplier Relationship Management is a great way to balance the cost focus with possibilities to drive improvements and encourage innovation.