Transform A step-change in performance
The objective of a Procurement Transformation is to create a measureable step-change in performance – it is definitely not ‘business as usual’ and is about much more than short term cost savings or delivering this year’s procurement plan.
An Occumen Procurement Transformation changes the way a business thinks about buying products and services. Cost reduction is important, but so is transforming and strengthening the relationships between a business and its suppliers. In essence, we redefine the role of procurement from ‘support function’ to ‘business partner’.
The Occumen approach reduces a client’s cost base in a sustainable way by bringing together stakeholders from across the business to work out what they really need to buy, identifying appropriate suppliers and negotiating robust contracts that deliver the right balance of cost, quality and service.
It usually starts with a diagnostic phase which leads on to a phased transformation plan. The Procurement Transformation plan might include designing a new organisation structure and operating model; implementing strategic category management in a way that transforms the relationship between procurement and the rest of the business; putting in place a supplier relationship management process; drawing up new procurement policies and procedures; putting in place proper governance and providing help and advice to select and configure a procurement system.
The challenge though, is doing this in a way that changes the behaviour and culture of the organisation for ever, so that the transformation endures after Occumen has moved on. That’s the bit that we are very good at. We are good at it because we have done it many times in a variety of organisations with widely different styles and cultures, because we all have business experience beyond procurement and because we are not afraid to challenge a bit, and tell our clients what they need to know rather than what they want to hear.
The Procurement development lifecycle
The ‘right place’ to be on this curve depends on an organisation’s goals, and the position might be different for individual spend categories or geographical regions within the same company. Whatever the position on the curve, it is critical for any company to build the skills needed to be “good”. Occumen has tools that provide the insight to identify where a business currently sits on the curve, how well it is performing at that point and where it should aspire to be to ensure the most cost-effective procurement function.