Transform Procurement
As the role of procurement continues to evolve, new approaches are required. Leading organizations are transforming their procurement function with new sustainable mindset, new processes and new technology. PIR has extensive experience of transforming sourcing and procurement organizations on strategic, tactical and operational levels with clients that are leading organizations within their industry.
Assessing the maturity of the procurement function is an effective approach for identifying the next steps in its development. The assessment serves as a diagnostics tool, a discovery baseline, or a benchmarking exercise to pinpoint areas for improvement, and it can also be the starting point for a broader transformational journey. At PIR, we have a proven procurement maturity framework that assess the procurement maturity from five perspectives: Strategy, Organization, Processes, Sustainability, and Digitalization
Read more about how we view Maturity Assessment here
Whether you are in an emerging market, a mature business, an organization in decline or a combination of all, it is likely that your current business outlook is subject to change, impacted by macroeconomic factors like technology disruption, globalization and counter movements, regulatory changes, skills shortages or economic distress. Procurement can and should have pivotal role in this environment, but to ensure this, the Procurement function needs to adapt and evolve to stay relevant and maximize business impact. When Procurement is Done Right, the Procurement strategy is an integral part of, and aligned with, the overall business strategy.
Read more about how we view Strategy Development here
By focusing on optimizing processes and organizational structures, companies can achieve significant improvements in performance, agility, and value creation. One effective way to achieve this is by establishing a procurement operating model. PIR’s approach helps in aligning the organization’s strategy with its operations, ensuring that resources are utilized effectively, and that the organization can respond swiftly to market changes and customer needs.
Read more about how we view Organization & Process Excellence here
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. As Procurement moves from user-unfriendly suites to user centric best-of-breed applications, from bespoke processes to standard workflows, and from on-prem to SaaS solutions, we see a tectonic shift ongoing for the procurement function. At PIR we have extensive experience navigating the procurement digital landscape to ensure long-term value.
Read more about how we view Procurement Digitalization here
Transform Procurement Engagements
Cost Control Analysis
The client wanted to gather an as-is understanding of cost control practices, originating from two legacy organizations following a recent merger, and identify improvement areas.
Industry: Media & Entertainment,Private Equity
Transformation of an energy sector pioneer
Background
Following the deregulation of public procurement in the utilities sector, our client aimed to become the top procurement organization in the energy sector. This objective was supported by several strategic reviews, both top-down and bottom-up, which identified significant untapped potential in procurement.
Challenge
The challenge was to streamline processes and reduce the dependency on consultants. To achieve this goal, it was necessary to enhance efficiency and speed up the value creation of the procurement organization.
Industry: Power & Utilities
Maturity Assessment of the Procurement Function
The client wanted to increase spend transparency, identify current state of the procurement function, and develop a target state for the future.
Industry: Infrastructure & Construction
Insights in Transform Procurement
Insight
Procurement Digitalization
Why is Procurement Digitalization Important? 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 ...
Insight
Procurement Operating Model
Why Establish a Procurement Operating Model? A procurement operating model is crucial for any organization aiming to enhance its operational efficiency, reduce costs, and drive sustainable growth. By focusing on optimizing processes and organizational structures, ...