Procurement controlling has become even more important with the multi-crises. The time has come again to align and manage procurement even more strategically in order to achieve competitive advantages.
This raises the following questions:
Procurement controlling is one of the keys to sustainable economic success. Why? Because it acts like a compass in the complex world of strategic procurement. It allows you to make informed decisions, minimize risks, and work more efficiently. And that's just the tip of the iceberg.
Procurement controlling is like the steering wheel of a ship, navigating you safely through the rough seas of everyday procurement. It helps you keep an overview by giving you a clear view of all relevant key figures. From price developments and supplier performance to process costs - all these data are combined into a detailed picture that shows you where you stand and where you are going.
But procurement controlling is not just a reactive tool. It is proactive and allows you to plan strategically for the future. You can identify trends before they become obvious, and thus initiate the right measures at the right time. This is a real competitive advantage that helps you to always be one step ahead.
Procurement controlling is also a powerful tool for cost reduction. It enables you to identify and optimize inefficient processes, avoid unnecessary expenses, and achieve a better performance:cost ratio from your suppliers. All of this directly contributes to your company's bottom line.
In summary, procurement controlling is a powerful weapon for every buyer. It is your pilot in uncertain waters, your strategic advisor, and your cost optimizer. And the best part? It is a continuous process that gets better with every step. So, are you ready to discover the power of procurement controlling and take your procurement organization to the next level?
Successful procurement controlling consists of several critical success factors. The following three points are crucial if you want to manage your procurement even more strategically.
1. Strategic orientation and consistency: Excellent procurement should not only be operational but also strategically oriented. This includes, above all, the integration of procurement into the corporate strategy. Ideally, the corporate strategy is co-developed by procurement. The various procurement strategies are consistently developed from the corporate strategy. Procurement controlling ensures the success of these individual strategies.
2. Differentiated key figures: Only what can be measured can also be controlled. Therefore, key figure-based management is indispensable. To avoid getting lost, key figures must be differentiated into "normal" key figures and "key performance indicators" (KPIs) as well as leading and supporting key figures.
3. Procurement data quality: Impressive KPI dashboards do not just fall from the sky, but are the result of a data-driven organization. On the way to a data-driven procurement organization, strong leadership, effective communication, further education, and discipline are required.
These factors form the basis of excellent procurement controlling and help you to manage your procurement even more strategically.
To measure the maturity level of procurement controlling, you can refer to the concept of maturity models. But what exactly are maturity models?
Maturity models enable a systematic evaluation and improvement of processes and structures in a company. They provide a kind of "map" on which you can read the current status of your company and plan the path to further improvement. They are applicable in various areas, including procurement controlling.
The maturity model in procurement controlling usually consists of several stages, representing the progress from an initial, unconscious, and reactive state to a matured, conscious, and proactive state. Each stage has specific characteristics and requirements, and the transition from one stage to the next requires certain changes and improvements.
Now, how can you measure the maturity level of procurement controlling in your company? There are various approaches for this. Below, I present two simple options.
1. Self-assessment: In this approach, you conduct an internal audit to determine the current maturity level of procurement controlling. You review the existing processes, systems, and capabilities and evaluate them based on the criteria of the maturity model. This method requires an honest and accurate self-assessment. However, it gives you a quick overview of the state of affairs and allows you to uncover potential for improvement.
2. External evaluation: In this approach, you involve external experts to evaluate the maturity level of procurement controlling. These experts can provide unbiased assessments and help you discover blind spots that you may have overlooked. They can also give you valuable insights and recommendations for improving your procurement controlling.
Regardless of which approach you choose, it is important that you repeat the evaluation regularly. Only in this way can you track progress and ensure that your improvement measures are effective.
In summary, the maturity model is a valuable tool for measuring and improving procurement controlling. By regularly evaluating the maturity level, you can determine the current state of procurement controlling in your company and create a structured plan for further improvement.
