Aligning Goals and Strategy
Foundations of Successful Procurement 4.0
The right strategic alignment provides the basis for digitalized procurement to succeed long term. Yet when businesses define procurement goals and strategies, important points are often missed or insufficiently considered. Procurement, for instance, may end up being misaligned with a company’s overarching goals, or focused almost exclusively on cost reduction and supply security. Other goals, such as working with suppliers to improve quality and introduce product and process innovations, are rarely pursued, if at all.
This is precisely where our IDEa concept comes in, ensuring that your procurement strategy is closely aligned with your corporate goals.
What Does Goal and Strategy Alignment Actually Involve?
Working with top management, procurement managers carefully align precise, measurable procurement goals and strategies with the company’s overarching goals and strategies. This “upwards alignment” then allows specific goals and strategies to be formulated for the three core processes of procurement. This will mean more support for procurement from the board and management, and a solid foundation for a successful Procurement 4.0.
We develop goals and strategies on four levels for the digitalization of your procurement:
At the top level, the direction is defined in terms of goals and strategies for procurement as a whole, across all business units. The focus is on digitalization – i.e. Procurement 4.0.
Because the various business units often pursue different goals and strategies, procurement goals and strategies are tailored to each of these business units at the second level.
At the third level, there are precise specifications for each core process to ensure that buyers know how procurement goals and strategies are going to be implemented and for which commodity groups, suppliers, and orders.
Finally, on the fourth level, activities and levers are derived for each core process.
If you want to gain more insight into our approach, we offer a one-day workshop that covers the following topics:
- Performing a situation analysis
- Formulating and choosing a strategy
- Implementing goals and strategy