bpo future forward: 6 ways to drive procurement effectiveness
DESCRIPTION
Keeping costs low through category and demand management, process improvement and supply chain optimization – these have always been a procurement mandate. But today, the function’s scope has expanded to include new deliverables – enhance the revenue side of the P&L, leverage the supply market to help drive product (or service) range enhancement, open new channels to market, and more. While trying to accommodate and deliver on the new demands, a new paradigm is emerging – one that covers the entire procurement function from strategy to transactional buying and all the enabling activities. For this, a skilled procurement team is essential – a requirement that enterprises are grappling with today. To fill the gaps, augment and complement in-house strengths, enterprises are exploring specialist providers that bring specialized skills to the table. As enterprises look to leverage specialist providers, here are six ways to drive benefits with approaches that range from analytics-based to value-focused.TRANSCRIPT
1. GET THE RIGHTOPERATING MODEL 2. BENCHMARK TARGETS 3. BOLSTER STRATEGIC
CAPABILITIES
The mandate for most chief procurement o�cers (CPOs) today is to deliver and sustain value year-on-year – with limited resources and budgets. That’s why they need a skilled business process outsourcing (BPO) partner to make their procurement operations more e�ective. Here are 6 ways
to drive bene�ts with approaches that range from analytics-based to value-focused.
6 ways to driveprocuremente�ectiveness
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This starts with achieving function-wide clarity on roles across
spend categories, functional dependencies with �nance teams, and
value delivery targets by category portfolios
6. ROBUST ANALYTICSAND REPORTING
Find a BPO partner with a good mix of seasoned procurement professionals
that not only augment the internal teams, but also bring to the table,
deep category expertise and procurement consulting
Execute a capability benchmarking assessment to identify functional
performance gaps and a value assessment across the full external
spend base to maximizevalue delivery
Leverage high calibre specialist analytics resources who can provide
category-speci�c dashboards, ad hoc analytics support, spend cube analytics,
and bene�ts tracking
4. DERIVE VALUE FROMTACTICAL ACTIVITIES
Formalize structured processes that bring focus to areas like supplier panel
management services, contract to purchase, and catalogue management
5. ENSURE COMPLIANCE
Get a dedicated team to monitor operational procurement processes such as master data management,
invoice validation, and accounts payable processes
THE SOURCING AND PROCUREMENT(S&P) SERIES