The power of strategic procurement controlling

Why is strategic procurement controlling so powerful?

The maturity level of your strategic procurement controlling system of 2024 is determing the maturity of your entire procurement organization in 2030.

Why is that?

If you have a clear vision, how your procurement organisation will look like in 3-7 years and a consistent strategic Procurement Controlling System in place, I am convinced that you can realize your vision that you have developed this year.

What are the key sucess factors in strategic procurement controlling?

From my point of view there are 3 key success factors leading to an excellenct strategic procurement controlling system.

1. Willingness to lead your procurement team into the future

First, you need to have the willingness to lead your team into the future.

In case you do not have serious willingness and influence on top leadership forget about to set-up a strategic procurement controlling system.

2. Measure your maturity level

What is your current maturity level of Strategic Procurement Controlling System?

If you do not know, I recommend to do a quick self-assessment first by answering these key questions based on my template:

• How deeply is procurement involved in developing the business strategy incl. design of business model?
• What is the basis of your sourcing / award decisions?
  
• How do you control your negotiations?
  
• How do you assure sustainable negotiation results?
  
• How do you measure and manage procurement success?
  

Second, I recommend to perform an evalution together with entero, Procurement Leadership Partner. We set-the basis so that you can develop towards a data-driven procurement organization.

In case you are interested please book us a PROCUREMENT LEADERSHIP COFFEE TALK.

3.  Fulfill Five Roles as Procurement Leadership Team

A. Visionary

Based on your current performance and maturity level and based on your business strategy develop a compelling core procurement strategy consisting of purpose, vision, mission, core values, strategic goals and measures.

B. Architect

Based on your core procurement strategy build your most effective procurement organizational strucure.

C. Inspirer

Based on your defined roles & responsiblities lead your people by inspiration. According to studies, this leadership style has the highest postive impact on motivation.

D. Innovator

Make sure that you innovate your procurement processes based on Best Practices. Always rethink first instead of blindly falling in love with certain tools.

E. Manager

Excellenty manage your procurement performance including emotional storytelling and a sense of humor.