PROCUREMENT TRANSFORMATION EXPERTISE

The procurement function is evolving rapidly, and enterprises increasingly view Procurement as a critical link in their value chain. Your customers as buying organizations expect their suppliers to vigilantly pursue innovation and continually improve performance.

How well is your procurement organization responding to these expectations?

Compliance is an important piece of the puzzle, but alone does not form a comprehensive business strategy for the procurement function nor enable an effective organizational partnership with stakeholders across the enterprise. Augment Capital Edge’s business system compliance capabilities with procurement transformation consulting services to realize your value creation objectives.

Capital Edge assists our Procurement customers with defining and designing their strategies for organizational structure, skills, procurement solutions and supply chain. These strategies are then realized through the application of bespoke playbooks and other tactics. In tailoring your specific approach, aspects considered may include:

  • Standalone functional transformation or an element of a larger enterprise transformation
  • Procurement strategy and tactics
  • Direct and/or indirect spend
  • Federal and/or non-Federal spend
  • Strategic sourcing and/or procurement operations
  • New or existing procurement platforms
Procurement Org Graphic

Capital Edge Consulting has the depth and breadth of consulting professionals to offer a 360-degree assessment of Procurement’s performance and maturity from the perspective of five personas, each playing a critical role in the success of the function:

Our team includes individuals who formerly served as the head of Procurement, held leadership roles within the function at major GovCon organizations or were formerly Government Contracting Officers.

Capital Edge is the nation’s largest GovCon-compliance-focused consultancy. Having walked more than a few miles in your shoes, our team possess hands-on, Fortune 500 experience in leadership roles within corporate Compliance functions.

Capital Edge supports customers daily across the various corporate functions. Such interactions include the C-Suite, Finance, Accounting, Legal, Compliance, Internal Audit, HR, IT, Business Development, Program Management, Engineering, Property, Small Business and more. Our constant engagement with this broad spectrum of organizational stakeholders reveals current and important insights for Procurement to consider when planning for, realizing and maintaining procurement excellence.

Whether serving in supplier relationship management roles in commercial organizations or as Contracting Officers in public sector organizations, Capital Edge Consulting has considerable experience interacting with Procurement organizations and offers insights into capabilities as well as traits valued by the Customer persona.

Perhaps the most important persona to the eventual success of Procurement is the supplier. The voice of the supplier must be considered during transformations as a critical link in the value chain and meet or exceed its customers’ expectations.

Fundamental in executing a transformation engagement is clearly understanding the strategy and vision of Procurement, for the short-term, near-term and long-term. Common considerations that might be included are:

  • Spend and supplier segmentation
  • Supplier management
  • Category management
  • Sourcing and Contracting
  • Purchasing and Payables
  • Business process outsourcing (BPO)
  • Performance management
  • Compliance objectives

Supporting the established strategy is the associated organizational structure, considerations may include:

  • Contemporary alignment of activities
  • Centralization of strategic and tactical functions within appropriate roles
  • Job framework that provides for meaningful roles to attract entry-level talent and retain talent
  • Organizational strategy
  • Staffing and talent strategy
  • Shared services structure and approach
  • Learning and development programs and platforms
  • Established pathway for functional career advancement

Transformations commonly include a need to augment or improve skills as team members support the mission of new roles and functions within the Procurement organization. Further, especially as it relates to implementation of new procurement solutions, skills enhancement is needed to drive solution adoption and value realization. Common aspects of transformation engagements include:

  • Assessment of maturity curve position relative to aspirational position
  • Assessment of job families, job titles and grades, and job descriptions
  • Competency model establishment
  • Assessment of training content

We help customers realize the benefits software systems are supposed to provide. Procurement solutions should enable the strategy and position the function to create and sustain value. Too often, Capital Edge Consulting finds that insufficient digitization of procurement processes within installed source-to-pay solutions are barriers to value creation. Representative aspects of solutions-related support might include:

  • Industry digitization determination and differentiation potential
  • ERP and/or procurement solution selection support
  • Supplier qualification and risk management
  • Category management and strategic sourcing configuration approaches consistent with established strategies
  • Contracting, contract management, and transaction repository
  • Requisition-to-pay process refinement in the context of industry compliance requirements
  • Data/spend analytics evaluation and future-state approach determination
  • Solution implementation oversight
  • Solution adoption and optimization support

Procurement Transformation

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PROCUREMENT TRANSFORMATION RESOURCES

Latest Questions Being Asked About Procurement

Although the outcomes of transformation initiatives can be summarized as going from good to great, or great to greater, any number of events may warrant transformation services:

  • The procurement function is viewed as a tactical, back office function.
  • A significant change in the amount of spend under management.
  • Difficulty in attracting and/or retaining talent.
  • There is a low level of organizational maturity.
  • End-to-end activities are performed by a single role (e.g., supplier management, sourcing, contracting, buying, performance management, etc.).
  • The organization is experiencing a lack of resilience, innovation and/or performance from the supply chain.
  • A recent or planned merger, acquisition or divestiture.
  • A significant planned, ongoing, or completed ERP or procurement solution implementation.
  • An existing or expected significant amount of oversight from external audit or review organizations.

Foremost, Capital Edge Consulting believes in a transformation approach that keeps things simple for ease in communications and managing change while being comprehensive in scope. For the lifecycle of transformation activities, we will consult within four primary areas:

Strategy

Fundamental in executing a transformation engagement is clearly understanding the strategy and vision of Procurement, for the short-term, near-term and long-term. Common considerations that might be included are:

  • Spend and supplier segmentation
  • Supplier management
  • Category management
  • Sourcing and Contracting
  • Purchasing and Payables
  • Business process outsourcing (BPO)
  • Performance management
  • Compliance objectives

Organizational Structure

Supporting the established strategy is the associated organizational structure, considerations may include:

  • Contemporary alignment of activities
  • Centralization of strategic and tactical functions within appropriate roles
  • Job framework that provides for meaningful roles to attract entry-level talent and retain talent
  • Organizational strategy
  • Staffing and talent strategy
  • Shared services structure and approach
  • Learning and development programs and platforms
  • Established pathway for functional career advancement

Skills

Transformations commonly include a need to augment or improve skills as team members support the mission of new roles and functions within the Procurement organization. Further, especially as it relates to implementation of new procurement solutions, skills enhancement is needed to drive solution adoption and value realization. Common aspects of transformation engagements include:

  • Assessment of maturity curve position relative to aspirational position
  • Assessment of job families, job titles and grades, and job descriptions
  • Competency model establishment
  • Assessment of training content

Solutions

We help customers realize the benefits software systems are supposed to provide. Procurement solutions should enable the strategy and position the function to create and sustain value. Too often, Capital Edge Consulting finds that insufficient digitization of procurement processes within installed source-to-pay solutions are barriers to value creation. Representative aspects of solutions-related support might include:

  • Industry digitization determination and differentiation potential
  • ERP and/or procurement solution selection support
  • Supplier qualification and risk management
  • Category management and strategic sourcing configuration approaches consistent with established strategies
  • Contracting, contract management, and transaction repository
  • Requisition-to-pay process refinement in context of industry compliance requirements
  • Data/spend analytics evaluation and future-state approach determination
  • Solution implementation oversight
  • Solution adoption and optimization support

Downloadable Datasheet

https://www.capitaledgeconsulting.com/wp-content/uploads/2021/01/TL-Procurement-Excellence

Procurement Transformation

Have Questions or need Consulting Expertise Regarding Procurement Transformation?

We Can Help!

Contact the experts at Capital Edge Consulting today.
Call: (855) 227-3343 or Email: info@capitaledgeconsulting.com

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