Most businesses inherit legacy procurement functions, which evolved over time without any focus on transformation. Others are victims of their own success where rapid growth fuelled by external spend has outstripped the abilities of their ‘historically set up procurement team.’
Both types of procurement functions end up paying over the odds for goods and services procured because of costly and inflexible internal functions owing to:
- Suboptimal savings delivery and sustenance of benefits
- Management scepticism around value from procurement
- Demotivated workforce with limited scope for growth
- Poor risk and compliance management
Procurement Operating Model Design Methodology
Efficio helps organisations prevent savings erosion and drive real value delivery through an optimised and future-fit procurement target operating model. By assessing a business’s existing state, defining a set of key design principles and drawing up the future state, we work to co-create a robust and leading practice operating model.
Our methodology starts with identifying gaps against leading practice and progresses to designing the target state. This not only maximises the value delivery (cost optimisation) but also enables improvement of procurement delivery services to the wider organisation in a real partnership set up. This structured approach addresses all elements of an efficient procurement operating model, and covers:
